AC3's AU$24.7m acquisition offer accepted by Bulletproof board

After rejecting a AU$17.9 million takeover bid from Macquarie Telecom, Bulletproof has accepted AU$24.7 million from AC3.
Written by Asha Barbaschow, Contributor

Cloud services company Bulletproof has announced accepting a AU$24.7 million buyout offer from software firm Klikon Group Holdings -- trading as the Australian Centre for Advanced Computing and Communication (AC3).

The offer, priced at 15.2 cents per share, is still subject to a number of conditions, such as shareholder and court approval.

In a statement issued to the Australian Securities Exchange (ASX) on Thursday morning, Bulletproof said its independent board committee unanimously recommends shareholders vote in favour of the acquisition offer in the absence of a "superior" proposal.

AC3 emerged as the prospective buyer for Bulletproof last month, days after the former rejected an offer made by Australian heavyweight Macquarie Telecom. At the time, Bulletproof labelled AC3's offer as being the most executable.

The company told shareholders that it had additionally received interest from a "number of parties" keen to acquire its business, and that several bidders had also requested further time for due diligence.

Macquarie offered Bulletproof 11.0 cents per share, with the AU$17.9 million sum for the former to buy the remaining 83.89 percent of Bulletproof it did not already own.

Bulletproof instructed shareholders to reject the offer made by Macquarie on December 22 on the grounds that it was "not fair and not reasonable". It said the offer from the Australian IT giant did not reflect the strategic value of Bulletproof's cloud business, nor does it take into account the potential profitability of the company.

In early December, Bulletproof co-founder Lorenzo Modesto told ZDNet he was opposing the takeover bid made by Macquarie.

Modesto, whose company Domains and Web currently boasts a 12.6 percent stake in Bulletproof -- second only to Macquarie -- said he wants a higher valuation before letting his shares go.

"We are delighted to present the scheme to shareholders of Bulletproof, as it provides materially better value than the takeover offer announced by Macquarie Telecom Group in November and at an offer price that is compelling for our shareholders," Bulletproof chair Craig Farrow said in a statement on Thursday.

"I'm confident that the combination of AC3 and Bulletproof should also be highly attractive to both our employees and customers, given the capabilities and strength of a combined AC3 and Bulletproof Group."

Bulletproof, founded in 2000, listed on the ASX after performing a reverse takeover of Western Australian-based mining company Spencer Resources in early 2014.


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