Macquarie Telecom is seeking to acquire cloud services provider Bulletproof, offering $0.11 per share for the voting shares that it doesn’t already hold.
Macquarie currently controls 16.47 per cent of voting shares following the execution of a call option deed between one of its subsidiaries and Woodward Family Company Pty Limited — which is associated with Bulletproof CEO Anthony Woodward.
The offer values Bulletproof’s share capital at around $17.9 million, representing a 64.2 per cent premium on the closing price of its shares before it went into a trading halt on 17 November ahead of the announcement.
“The proposal to purchase all of Bulletproof’s shares for cash is clearly compelling and offers a significant premium to the recent share price performance,” said Macquarie CEO David Tudehope.
“Bulletproof has experienced a deterioration of earnings over the last 18 months.”
Bulletproof in August announced underlying EBITDA for FY17 of $2.2 million, down 53 per cent year on year, an underlying net loss after tax of $200,000 and a reported NPAT loss of $6.1 million.
“Bulletproof is a long-standing business with a talented and experienced team. There is a strong strategic fit with Macquarie,” Tudehope said.
“The combination will enable Macquarie and Bulletproof customers to access a full set of cloud options of colocation, private cloud and public cloud. We believe it is in the interests of Bulletproof shareholders to accept the Macquarie offer."
Bulletproof said it has established an independent board committee to assess the offer. The committee brings together all of the company’s directors with the exception of Woodward and non-executive director and chairperson David Paterson, who is ill.
The committee has advised Bulletproof shareholders to take no action until the it has a chance to formulate a formal recommendation on the offer.