Australian technology firm Bulletproof has agreed to acquire the business assets of Cloud House Limited, a Kiwi cloud services company valued at $4.2 million.
With offices in Auckland and Wellington, Cloud House is one of New Zealand's largest Amazon Web Services Advanced Consulting partner, providing consulting, billing and managed services for customers migrating to the cloud.
Terms of the deal will see Bulletproof pay $1 million to purchase the business assets of Cloud House from existing cash reserves, bringing approximately $3.5 million annualised revenues, with around $500,000 of current run-rate EBITDA to the company.
In addition, the owners of Cloud House, including co-founder and CEO Scott Judson, may earn up to a further $4.2 million, split between cash and shares, payable based on performance targets to be achieved up to 30 June 2017, or earlier if achieved earlier.
As part of the acquisition the owners of Cloud House will also transition to become part of the Bulletproof management team.
“We have been working with the outstanding team at Cloud House on a number of partnered opportunities for some time and we have always been impressed with the innovative, customer-focused capabilities of the Cloud House team,” says Anthony Woodward, CEO, Bulletproof.
“With great cultural alignment between the organisations already demonstrated, we believe the Cloud House team will feel at home within the wider Bulletproof Group and we're excited to welcome them aboard.”
Woodward says Cloud House has been “instrumental” in some of the largest public cloud projects in New Zealand and beyond.
“Immediate synergy opportunities of the deal arise from consolidated buying of key capacity and licensing from suppliers that Bulletproof and Cloud House share, along with Bulletproof's AWS Premier Partner benefits being made available to Cloud House customers,” Woodward adds.
Woodward says innovation in managed cloud and application services that the Cloud House team has developed will be merged with Bulletproof's existing cloud services offering.
“The end to end product offering made available to the New Zealand market from this deal is really going to disrupt the market,” adds Scott Judson, co-founder and CEO, Cloud House.
“The acquisition brings to New Zealand the first AWS Premier Partner, making us one of only eight top tier AWS Partners in Asia Pacific.
“We have instant access to the Bulletproof market-leading managed services platform and many other resources we can leverage. And the cultural alignment between Bulletproof and Cloud House couldn't be better:”
The deal represents Bulletproof's third acquisition, having previously acquired Panthacorp, an AWS Consulting partner in December 2014, and Infoplex, a leading Private Cloud provider, in October 2015.