Robbins Arroyo LLP: Acquisition of Apigee Corp. (APIC) by Alphabet Inc.'s Google (GOOGL) May Not Be in Shareholders' Best Int...
September 08 2016 - 7:11PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Apigee Corporation
(NASDAQ: APIC) by Google (NASDAQ: GOOGL). On September 8, 2016, the
two companies announced the signing of a definitive merger
agreement pursuant to which Google will acquire Apigee. Under the
terms of the agreement, Apigee shareholders will receive $17.40 for
each share of Apigee common stock.
View this information on the law firm's Shareholder Rights Blog:
https://www.robbinsarroyo.com/shareholders-rights-blog/apigee-corporation-sept-2016/
Is the Proposed Acquisition Best for Apigee and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Apigee is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $17.40 merger consideration represents
a premium of only 6.5% based on Apigee's closing price on September
7, 2016. This premium is significantly below the average one-day
premium of nearly 41.89% for comparable transactions within the
past three years. Further, the $17.40 merger consideration is
significantly below the target price of $19.00 set by an analyst at
JMP Securities on May 19, 2015, and the target price of $18.00 set
analysts at Nomura and Pacific Crest Securities, on February 22,
2016 and June 1, 2016, respectively. In the last three years,
Apigee traded above the merger consideration – at $20.50 – on April
24, 2015.
On May 25, 2016, Apigee reported strong earnings results for its
third quarter 2016. Apigee reported total revenue of $23.5 million,
a 36% increase from the same period of the prior year. Apigee has
also beaten analyst estimates for revenue, adjusted net income, and
adjusted earnings per share for the past four consecutive quarters.
In commenting on these results, Apigee Chief Executive Office Chet
Kapoor remarked, "We are pleased to deliver another solid quarter
of revenue and billings growth, driving us closer to our goal of
achieving positive operating cash flow by the quarter ending
January 2017. We see our business benefiting from two key trends in
enterprise IT – the ongoing adoption of digital business and the
shift to cloud. Across both of these trends, APIs are a key enabler
for quickly delivering customer value. With our growing customer
base and expanding partner engagement, we believe Apigee is
positioned to drive these trends."
In light of these facts, Robbins Arroyo LLP is examining
Apigee's board of directors' decision to sell the company now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
Apigee shareholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible
price for shareholders and the disclosure of material information.
Apigee shareholders interested in information about their rights
and potential remedies can contact attorney Darnell R. Donahue at
(800) 350-6003, ddonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion of value for themselves and
the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20160908006768/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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