Overall, vwap of 33.97c yesterday... market cap still only a...

Overall, vwap of 33.97c yesterday...   market cap still only a tiny $47.3M!

Bulletproof Group is striving to dominate the critical 'cloud services space'. BPF has made an important acquisition.  It has bought Infoplex, a private cloud services business.

Infoplex utilises third party data centres in Sydney and Melbourne to provide their own brand of managed cloud services.  Infoplex is popular with blue-chip customers.  It's client list includes major resources companies and finance firms.  It’s also got some government clients that it takes care of.

Bulletproof paid $3.55M.  In return, they’ll get 100% of the shares in Infoplex.  To put that in context, they’re expecting Infoplex to pull in $4.4M revenue in FY16.  Then $6.2M in FY17.  Then $6.9M in FY18.

By FY18, they’re hoping EBIT will rise from $140,000 to $1M+.

Why Infoplex?  Probably because Infoplex is very similar to the cloud business Bulletproof already runs. Except with better clients.  In a presentation to investors, BPF highlighted the ‘immediate synergies’ available.  In other words, they’ll be able to use the same people and resources, to help cut total costs.

From a growth point of view, acquiring Infoplex will help them focus on bigger corporate and government deals.  The really lucrative stuff.

Your assessment will depend on your understanding of the cloud services sector.  If you’re new to ‘the cloud’, IBM [NYSE:IBM] provides this neat summary:
‘Cloud computing, often referred to as simply “the cloud,” is the delivery of on-demand computing resources—everything from applications to data centers—over the Internet on a pay-for-use basis.’
In other words, you pay to access software, platforms or infrastructure that’s located somewhere else.  For example, you might pay to have your company’s important data backed up to a secure server somewhere in your city.  

Or you might decide to have your company’s proprietary software based online, so employees can access it anywhere they have a WiFi connection.  The benefits include scalability; you don’t have to invest in your own servers, for example.

How do you tell whether a cloud services company represents good value? Money Morning small-caps analyst Sam Volkering can help you decide (and yes, he gave BPF a big tick of approval).

DYOR