In February, the Eagan-based IT services provider merged with special purpose acquisition firm Forum Merger Corporation in a $1.2 billion transaction and became a publicly listed company.
US communications, networking, and security technology services provider ConvergeOne is exploring the sale of the company, sources told Reuters.
The company is said to have attracted the interest of private equity firms, according to sources familiar with the matter.
In February, the Eagan-based IT services provider merged with special purpose acquisition firm Forum Merger Corporation in a $1.2 billion transaction and became a publicly listed company. However, ConvergeOne’s shares have been trading mostly flat since its initial public offering, which signals that the company might be vulnerable to takeover attempts.
ConvergeOne is majority-owned by investment firm Clearlake Capital. The controlling shareholder is said to be working with investment bank Raymond James Financial on the sale process, according to people familiar with the situation. However, sources said that a deal might not materialize.
Shares of ConvergeOne were up 15% as media outlets reported that the company is engaged in merger talks, trading 6% at $9.07. As a result, the company’s market capitalization reached nearly $700 million. In February, when the company announced its IPO, its total enterprise value, including debt and equity, was $1.3 billion.
ConvergeOne distributes networking and collaboration services from tech companies including San Jose-based IT conglomerate Cisco Systems and Armonk- headquartered technology giant IBM.
ConvergeOne serves over 10,000 clients, including 48% of the Fortune 500 companies in sectors including healthcare, manufacturing, finance, education and energy.
Nearly 63% of ConvergeOne's sales come from the company’s unified communications business, which offers software and other services to mid- to large-sized companies allowing them to manage customer contact and call centers.