Macquarie Telecom said it plans to leave Bulletproof's operations untouched if its acquisition is successful, but will remove the company from trading on the ASX.
The two companies announced the proposed deal to acquire Bulletproof earlier this week for $17.9 million, or 11 cents per share. The buying price represents a 64 percent premium on Bulletproof's closing share price before the acquisition announcement of 6.7 cents. Bulletproof's shares surged to 11 cents each after the proposal was made public.
MacTel said it has no intentions to make changes to existing operations or staff based on publicly-available information on the cloud provider. However, MacTel said it would make a final decision on any changes to Bulletproof after conducting a review into its operations and assets.
The acquisition still requires approval from at least 90 percent of shareholders. Bulletproof chief executive Anthony Woodward has already agreed to sell his 16 percent shareholding to MacTel if the proposal is successful.
In giving its reasons to shareholders why they should accept the offer, MacTel said Bulletproof currently has limited cash reserves and liabilities that exceed current assets.
MacTel chief executive David Tudehope told iTnews that Bulletproof was looking for a way out of being a publicly listed company and was looking to be bought out by a larger competitor.
Bulletproof today told shareholders not to take action on MacTel's offer until its board has had the opportunity to properly evaluate the proposal. The company established an independent sub-committee comprising of all of its directors except for Woodward and chairman David Paterson, who is on sick leave, to evaluate the proposal and examine any potential conflicts of interest.
Bulletproof also revealed that it has lodged a counter claim against Cloud House, the New Zealand company it acquired in January 2016.
Cloud House accused Bulletproof of intentionally mismanaging the New Zealand business in order to dodge additional earn-out payments of up to $3.6 million. In July, Cloud House lodged a claim in the New Zealand High Court.
So far, Bulletproof's legal costs have amounted to $120,000. A court date has been set for October 2016.