Converge Technology Shares Jump 28% After Strategic Review Launched

By Adriano Marchese

Shares of information-technology and cloud-solutions provider Converge Technology Solutions Corp. jumped in early trading on Wednesday after the company said it has formed a special committee to consider strategic alternatives, including a potential sale of the company.
At 9:46 a.m. ET, the shares were 28% higher at 5.10 Canadian dollars (US$3.81).

After markets closed Tuesday, Converge said that a special committee of independent directors will review and evaluate strategic alternatives.
Among the options that the committee will consider are a potential sale, merger, divestiture, recapitalization and whether to continue operating as a public company. The company said that management is aligned with the board’s decision to explore its strategic options, but cautioned that there is no assurance that the process will lead to any particular outcome.
It also said there won’t be any updates until the review process is completed or a specific transaction is chosen.
Write to Adriano Marchese at adriano.marchese@wsj.com