Federal Court approves AC3's Bulletproof acquisition

Federal Court approves AC3's Bulletproof acquisition

AC3 to pay $24.7 million to shareholders by 1 June

Simon Xistouris - CEO, AC3 (Photo - Christine Wong)

Simon Xistouris - CEO, AC3 (Photo - Christine Wong)

The Federal Court of Australia has approved the acquisition of Bulletproof (ASX:BPF) by managed services provider AC3.

Bulletproof told shareholders on 25 May that the court had approved the scheme through which Klikon Group Holdings, AC3's parent company, will acquire all of the issued shares in Bulletproof.

Shareholders of Bulletproof had approved the purchase on 18 May, with 98.7 per cent voting in favour of the scheme.

Bulletproof has already requested the suspension from official quotation with the Australian Securities Exchange (ASX) effective at the close of trading on 25 May. Shareholders will receive $0.152 per share by 1 June.

In 21 November 2017, Macquarie Telecom Group (ASX:MAQ) made a bid to acquire Bulletproof through its subsidiary, Macquarie Cloud Services, for $17.9 million.

At the time, Bulletproof established an independent sub-committee of the board, due to Macquarie Cloud Services' pre-existing holding of a "relevant" interest in 16.47 per cent of voting shares in Bulletproof through an entity affiliated with Bulletproof's CEO, Anthony Woodward. IBC later told shareholders to reject the proposal.

In January, it was revealed that AC3 was in negotiations to potentially acquire Bulletproof for $24.7 million.

“We’re always looking for opportunities to acquire complementary businesses as this is key to our growth strategy. Bulletproof fit the brief and we’re excited about the acquisition,” AC3 CEO Simon Xistouris said earlier in May.

It is understood that, combined, the two businesses will serve over 1,000 customers and employ over 330 people, regardless of Bulletproof’s move in February last year to cut 30 employees as part of cost-saving drive.

“Our people are our most important asset,” Xistouris said. “We believe that it’s the people behind the technology that make the difference for our customers.”

For Xistouris, the acquisition means that AC3 will have a much larger pool of talent and expertise that customers can leverage.

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