Macquarie Telecom and Bulletproof have both paused trading on the ASX this morning, hinting the two cloud providers could announce an upcoming merger.
MacTel requested the trading halt this morning pending the outcome of discussions about a potential acquisition. Meanwhile, Bulletproof requested a trading halt saying it was in discussions to be acquired.
Neither company divulged who they were in talks to acquire, or be acquired by. Both trading halts are expected to lift on Wednesday morning unless an announcement is made beforehand.
Both companies declined to comment any further outside the trading halt announcements to the ASX.
MacTel's business comprises of telecommunications, cloud services and government, which includes its Govzone cloud platform. Its traditional telco business represented two-thirds of revenue but delivered less than half of earnings, while cloud and government services made up the other third of revenue but 53 percent of earnings.
In September, MacTel became just the third cloud provider to achieve Protected accreditation for its government cloud services. The company has previously outlined its plans to invest $3 million of opex and $1.6 million of capex in government cloud, citing "strong and growing demand from our federal government agencies for secure cloud, including from tier one agencies like ATO".
MacTel reported an 8 percent increase in revenue to $219.7 million for the financial year ending 30 June 2017.
Bulletproof boasts a mixture of 700 corporate, government and enterprise customers, listing CrownBet, Channel Ten and the Australian Treasury among its largest clients. Its services include public and private cloud, cloud migration and managed cloud services.
Bulletproof reported revenue of $49.2 million for the year ending 30 June, with an underlying EBIT loss of $2.1 million.