Robbins Arroyo LLP: Acquisition of MedAssets, Inc. (MDAS) by Pamploma Capital Management May Not Be in Shareholders' Best Int...
03 November 2015 - 6:56AM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of MedAssets, Inc. (NASDAQ:
MDAS) by Pamploma Capital Management. On November 2, 2015, the two
companies announced the signing of a definitive merger agreement
pursuant to which Pamploma will acquire MedAssets. Under the terms
of the agreement, MedAssets shareholders will receive $31.35 in
cash for each share of MedAssets common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/medassets-inc
Is the Proposed Acquisition Best for MedAssets and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at MedAssets is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $31.35 merger consideration represents
a premium of only 32.4% based on MedAssets' closing price on
October 30, 2015. This premium is significantly below the average
one-day premium of nearly 59.5% for comparable transactions within
the past year.
On November 2, 2015, MedAssets reported strong earnings results
for its third quarter 2015. Total net revenue for the third quarter
of 2015 increased 8.1% to $190.0 million from $175.7 million for
the third quarter of 2014. Excluding the revenue contribution from
Sg2 (acquired on September 22, 2014), total net revenue growth was
2.3% on a year-over-year basis. MedAssets beat consensus analyst
estimates for adjusted EPS and adjusted net income in three out of
the last four quarters and beat estimates for sales in the last
four quarters. In commenting on these results, MedAssets Chairman
and Chief Executive Officer Halsey Wise remarked, "Since February,
our executive leadership team has been developing and implementing
a business transformation and value creation plan. We have been
making substantial progress, with our third quarter 2015 financial
results coming in near or above the high end of our previous
guidance for the quarter on all measures. This performance is a
testament to our employees' commitment, dedication and hard work to
executing our plan."
In light of these facts, Robbins Arroyo LLP is examining
MedAssets' 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.
MedAssets 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.
MedAssets 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/20151102006676/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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