Toronto-based Converge has paid £39.2 million for UK edtech Stone Group.
The PC builder, reseller and ITAD has been owned since 2019 by private equity house Souter Investments which has decided that now is the time to off-load it.
Toronto-based Converge is paying £39.2 milion for an 89 percent stake in Stone, which specialises in supplying hardware and IT services to the UK education and public sectors. Management will hang on to the remaining 11 percent.
After adjusting for positive working capital, the purchase multiple stands at 6.6 times Stone’s adjusted EBITDA for the same period.
Stone CEO Simon Harbridge said: “As a growing organisation with a strong team and great platform for significant expansion in the UK and Europe, joining Converge is a benefit for both our clients and Stone employees,”
Converge CEO Shaun Maine said: “2022 has been a monumental year of growth for Converge in the European market.”
The acquisition is expected to close in the fourth quarter.
