Menu
Cloud House puts Bulletproof in the legal firing line

Cloud House puts Bulletproof in the legal firing line

Claims Bulletproof allegedly missed performance targets deliberately

Bulletproof (ASX:BPF) has been dragged into a court battle following claims it allegedly mismanaged the acquired business operations of Cloud House in a bid to miss performance targets and prevent multimillion-dollar earn-outs.

The ASX-listed cloud hosting provider acquired the Auckland-based cloud specialist in January 2016, in a deal worth NZ$1 million up front, with a further NZ$4.2 million to be paid in a 50/50 split of cash and shares based on performance until 30 June 2017.

Yet, New Zealand High Court filings lodged by Cloud House directors claim the Australian cloud company allegedly managed the business in a way to intentionally miss such performance targets, alleging losses of NZ$3.8 million as a result.

Specifically, the claim alleges that Bulletproof’s management and business decisions after the acquisition of the Cloud House business assets resulted in the business “not achieving” the earn-out to which it is alleged to be entitled.

In addition, the claim also alleges that Cloud House was “misled” as to Bulletproof’s capabilities, customer base and access to managed services.

In response, Bulletproof has denied claims, insisting the organisation managed the Kiwi business in the “best interests” of the company, viewing the claim as “speculative and baseless”.

“Bulletproof disputes the allegations made and has foreshadowed a counter claim against Cloud House in respect of Cloud House’s financial position and projections in the course of the acquisition of the Cloud House business,” Bulletproof told shareholders.

“The Board has taken legal advice, and considered the facts and matters raised in the claim. In light of that review and the board’s assessment of the claim, the board considers it to be without merit and will vigorously defend the proceedings,” it said.

As reported by ARN, the purchase helped expand Bulletproof’s offerings around Amazon Web Services (AWS) within the New Zealand market, leveraging Cloud House’s local capabilities within the cloud.

With offices in Auckland and Wellington, Cloud House operated as the country’s largest AWS advancing consulting partner, helping cement Bulletproof’s position within the Kiwi industry.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags legalAWSBulletProofCloud House

Featured

Slideshows

Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Malwarebytes shoots the breeze with channel, prospects

Malwarebytes shoots the breeze with channel, prospects

A Kumeu, Auckland, winery was the venue for a Malwarebytes event for partner and prospect MSPs - with some straight shooting on the side. The half-day getaway, which featured an archery competition, lunch and wine-tasting aimed at bringing Malwarebytes' local New Zealand and top and prospective MSP partners together to celebrate recent local successes, and discuss the current state of malware in New Zealand. This was also a unique opportunity for local MSPs to learn about how they can get the most out of Malwarebytes' MSP program and offering, as more Kiwi businesses are targeted by malware.

Malwarebytes shoots the breeze with channel, prospects
Show Comments