Robbins Arroyo LLP: Acquisition of Xura, Inc. (MESG) by Affiliates of Siris Capital Group, LLC May Not Be in Shareholders' Be...
May 23 2016 - 4:00PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Xura, Inc. (NASDAQ: MESG)
by affiliates of Siris Capital Group, LLC. On May 23, 2016, the two
companies announced the signing of a definitive merger agreement
pursuant to which Siris Capital Group will acquire Xura. Under the
terms of the agreement, Xura shareholders will receive $25.00 in
cash for each share of Xura common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/xura-inc
Is the Proposed Acquisition Best for Xura and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Xura is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $25.00 merger consideration represents
a premium of only 27.7% based on Xura's one-week average unaffected
closing price. This premium is significantly below the average
one-week premium of nearly 90% for comparable transactions within
the past five years. Further, the $25.00 merger consideration is
significantly below the target price of $30.00 set by an analyst at
Craig-Hallum Capital Group LLC on April 18, 2016, and the target
price of $29.00 set by an analyst at Oppenheimer & Co. on April
15, 2016. In the last three years, Xura traded as high as $40.30 on
January 21, 2014, and most recently traded above the merger
consideration – at $25.78 – on January 5, 2016.
On April 15, 2016, Xura reported strong preliminary earnings
results for its fourth quarter 2015. Total revenue for the quarter
was $82 million, an increase of 28% compared to the same period
last year. Adjusted EBITDA for the quarter was $14 million, an
increase of 250% compared to the same period last year.
In light of these facts, Robbins Arroyo LLP is examining Xura'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.
Xura 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. Xura
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160523006419/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
Xura, Inc. (NASDAQ:MESG)
Historical Stock Chart
From May 2024 to Jun 2024
Xura, Inc. (NASDAQ:MESG)
Historical Stock Chart
From Jun 2023 to Jun 2024