Souter Investments to exit Stone Technologies with sale to Converge

Stone Technologies will mark the thirty-fifth acquisition announced by Canada's Converge or its affiliates since October 2017.

  • Stone Technologies is a provider of circular IT solutions for education institutions, as well as public and private sector organizations in the UK
  • Souter acquired a majority stake in Stone in 2019, investing alongside the company’s management team and a syndicate of investors led by RJD Partners
  • Converge is a Toronto-based software-enabled IT and cloud solutions provider

Souter Investments will exit its investment in UK-based IT services provider Stone Technologies through an agreement to sell the company to Canada’s Converge Technology Solutions. The deal, expected to close in the fourth quarter, is valued at C$59.6 million ($43.6 million).

Converge is a Toronto-based software-enabled IT and cloud solutions provider. Stone will mark the thirty-fifth acquisition announced by Converge or its affiliates since October 2017.

Stone Technologies is a Stafford, England-based provider of circular information IT solutions for education institutions, as well as public and private sector organizations in the UK. Souter acquired a majority stake in Stone in 2019 and invested alongside the company’s management team and a syndicate of investors led by RJD Partners.

“Stone has grown very strongly, marrying a focus on providing truly innovative and market leading products, services, and solutions with outstanding customer service, all things that resonate with its clients,” said John Berthinussen, managing director at Souter Investments. “We look forward to seeing that continue in partnership with Converge.”

“2022 has been a monumental year of growth for Converge in the European market,” said Shaun Maine, CEO of Converge. “Along with our recent acquisitions in Germany, we are excited to leverage the knowledge and skills of Stone Group and its teams to continue enhancing our capabilities and offerings to our clients in the United Kingdom and European Union.”

Souter Investments is the private family investment office of Stagecoach Group co-founder Brian Souter. The firm is based in Edinburgh and its primary focus is on private equity. It has invested over £500 million ($534 million) over the last 15 years and has over £250 million invested in its current portfolio of over 30 businesses.

The Stone deal follows Souter’s recent sale of Duke Street-backed specialist care provider Voyage Care to infrastructure investment manager Wren House.