ASX-listed Cloud services company, Bulletproof (ASX: BPF), is set to purchase managed private Cloud company, Infoplex, for $3.55 million.
The announcement follows a trading halt that the company entered into on September 15. As part of the Nextgen Group, Infoplex, manages and hosts blue chip customers’ private Cloud requirements for core enterprise applications.
Bulletproof has agreed to pay $3.55m cash for the purchase of 100 per cent of the shares in Infoplex. According to a company statement, the funds to meet that consideration and associated costs have been raised from a placement of $3.8 million of the company’s shares at $0.25 each with a number of institutional investors, including existing shareholders.
Bulletproof proposed to undertake a subsequent Share Purchase Plan at the same price offered to those placement investors ($0.25), to ensure all shareholders have the opportunity to participate in the transaction.
Speaking about the acquisition, Bulletproof CEO, Anthony Woodward, said as the company engages clients in their journey to Cloud, it has increasingly identified applications that customers wish to move to private Cloud for a variety of reasons.
“This acquisition gives us additional, market leading, private Cloud capacity and capability. That not only expands our own offering, but also presents a clear opportunity to the company to acquire more of these customers.
"Infoplex uses technology platforms and skills in which we are already the proven market leader, providing managed private Cloud services to customers like Bluescope Steel, Crownbet and Movember,” he said.
The Infoplex business currently has annualised revenues of $6 million with maintainable earnings of $1.4 million EBITDA annually. Bulletproof said that once the business is fully integrated, further savings will be achieved - with full synergies anticipated to allow the business to generate in excess of $2 million EBITDA annually.