William Blair Downgrades ConvergeOne, Inc. (CVON) to Market Perform After Company Acquired by CVC Fund VII for $1.8 Billion

William Blair analyst Maggie Nolan downgraded ConvergeOne, Inc. (NASDAQ: CVON) from Outperform to Market Perform.

For an analyst ratings summary and ratings history on ConvergeOne, Inc. click here. For more ratings news on ConvergeOne, Inc. click here.

Shares of ConvergeOne, Inc. closed at $9.43 yesterday.

Analyst comments: "We are pleased with the price point and believe this is a positive transaction for the shareholders of ConvergeOne. We do not expect any competing bids and the deal is expected to close in late 2018 or early 2019."

As a reminder: ConvergeOne (NASDAQ: CVON) announced today before the open that it has entered into a definitive agreement to be acquired by affiliates of CVC Fund VII ("CVC") in an all-cash transaction valued at approximately $1.8 billion. Subject to customary closing conditions and regulatory approvals, ConvergeOne expects the transaction to close in the fourth quarter of 2018 or the first quarter of 2019.

Pursuant to the terms of the merger agreement, affiliates of CVC will commence a tender offer for all of the outstanding shares of the Company in an all-cash transaction valued at $12.50 per share of common stock of the Company, representing a 35% premium to the thirty-day VWAP prior to October 25, 2018 and representing over a 56% premium to the closing price on ConvergeOne's debut date on the Nasdaq on February 23, 2018. ConvergeOne's Board of Directors unanimously approved the agreement and believes the transaction maximizes shareholder value.

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