Boston, MA 03/24/2014 (wallstreetpr) – Shares of InterCloud Systems Inc (NASDAQ:ICLD) are currently trading up more than 8 percent after the company announced plans to acquire VaultLogix, a move that will no doubt boost its business. Yet, it is emerging that the company is a subject of investigation for potential breach of securities practices.
The company is being investigated in relation to claims that it paid outsiders to run false and usually misleading articles in order to increase the price of the stock. The promotion articles were published by writers employed by well-known stock promotion firms.
Due to the misleading article campaigns, shares of the company suffered significantly, thus leading to losses for stockholders. If the claims are verified, they have the potential of adversely affecting the reputation of the management and hurting the position of the stock.
Even as it has emerged that InterCloud Systems Inc (NASDAQ:ICLD) is under investigation for potential breach and securities practices, the stock remains unperturbed. The Monday session is unfolding positively, suggesting that investors are more concerned about the opportunities being baked than the investigation issues.
Talk about baking opportunities and the company just announced a deal with VaultLogix LLC. VaultLogix is a provider of cloud backup services and it serves almost 10,000 businesses worldwide. The company generates more than $12 million in annual revenue and EBITDA of about $4.5 million.
Bringing two giants together
VaultLogix and InterCloud Systems Inc (NASDAQ:ICLD) are giants in their respective businesses. Thus integrating their abilities will help uplift each operation to earn higher revenue, exploit new markets and reduce some operating costs in the process.
According to VaultLogix CEO Tim Hannibal, they look forward as a cloud backup services company to benefit from selling their products and services to the impressive clientele of InterCloud. Likewise, they will also sell InterCloud services to their existing customers and team of resellers.
Does the acquisition have flesh?
Businesses are collaborating across industries today. But what does InterCloud and VaultLogix collaboration come to? Management from both sides are trying to lay out what they believe will take their operations to the next level and put for benefits into the hands of investors.
One line of thought that Mr. Hannibal tried to bring out about the collaboration of the two companies is that with the dynamics in the managed services business, getting everything under a single vendor is all important for customers. And with VaultLogix and InterCloud Systems Inc (NASDAQ:ICLD) teaming up, that single vendor of multiple cloud solutions is here.
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