MSSP Acquired: Converge Technology Solutions Buys Cybersecurity Firm Creative Breakthroughs
IT solutions provider Converge Technology Solutions has acquired Creative Breakthroughs Inc. (CBI), an MSSP and cybersecurity solutions provider for $US47 million plus $3 million in working capital. A three-year earn-out could add $17 million to the purchase price. The M&A deal’s valuation is a reasonable 5.1X to 6.0X annual EBITDA, based on various earn-out and financial performance targets.
This is technology M&A deal number 322 that MSSP Alert and sister site ChannelE2E have covered so far in 2022.
MSSP Acquired: Revenue and EBITDA Snapshot
CBI’s financial performance for the 12-month period ended January 31, 2022, includes:
- Gross revenue of approximately C$112 million (US$89.6 million); and
- adjusted EBITDA of C$9.1 million (US$7.3 million).
CBI, headquartered in Ferndale, Michigan, has 146 employees listed on LinkedIn — including strategists, former CISOs, and security experts. The MSSP’s market focus includes:
- threat-detection and obstruction;
- secure networks and endpoints;
- testing and monitoring areas of operational risk; and
- protecting data.
Converge Technology Solutions Buys Cybersecurity Company: Executive Perspectives
In a prepared statement, Steve Barone, CEO of CBI, said:
“For over three decades, our clients have been our biggest fans. They’ve been attracted to our tightly focused offerings with world-class results, and, in an effort to continue meeting their demands in relation to our ability to provide scale, we explored the M&A market for a partner to help us tell a bigger story. By joining Converge, CBI will now be able to take what we do to a much larger audience, integrate with key new partnerships, and have in-depth conversations regarding Cloud, Analytics, and Digital Infrastructure at the level our clients have come to expect.”
Added Greg Berard, president of Converge:
“Converge is excited to have CBI join us as our 30th acquisition. CBI’s knowledge of the security landscape and the strength of their team and solutions will be a major asset for Converge’s cybersecurity practice and our ability to continue protecting our clients with the best threat defenses for their organizations. CBI expands our security portfolio immediately by bringing more strategic partnerships and a team of strong technical resources across North America that will provide cybersecurity expertise and value for all of our Converge clients.”
This is Converge Technology Solutions’ 13th acquisition announced since October 2017.