SAN DIEGO and RICHARDSON, Texas, March 2, 2015 /PRNewswire/ -- Shareholder
rights attorneys at Robbins Arroyo LLP are investigating the
proposed acquisition of Mavenir Systems, Inc. (NYSE: MVNR) by Mitel
Networks Corporation (NASDAQ: MITL). On March 2, 2015, the two companies announced the
signing of a definitive merger agreement pursuant to which Mitel
Networks will acquire Mavenir. Under the terms of the
agreement, Mavenir shareholders will receive the equivalent of
$17.94 in cash or stock for each
share of Mavenir common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/mavenir-systems-inc
Is the Proposed Acquisition Best for Mavenir and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Mavenir is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $17.94
merger consideration represents a premium of only 19.8% based on
Mavenir's closing price on February 23,
2015. This premium is significantly below the average
one-week premium of nearly 32.6% for comparable transactions within
the past five years. In addition, the $17.94 merger consideration is significantly
below the target price of $24.00 set
by an analyst at Cowen and Company on February 27, 2015. Further, Mavenir traded
above the offer price at $18.78 on
March 25, 2014.
On February 26, 2015, Mavenir
reported strong earnings results for its fourth quarter 2014. In
particular, Mavenir, reported total revenue of $33.7 million for the fourth quarter, an increase
of 24% year-over-year. Additionally, Mavenir has beat consensus
analyst estimates for adjusted EPS, adjusted net income, and sales
in three out of its last four quarters. In commenting on
these results, Mavenir President and Chief Executive Officer
Pardeep Kohli remarked, "Mavenir delivered another strong
year with solid financial results, resulting from the rapid
adoption of 4G LTE and the launches of services such as VoWi-Fi and
VoLTE in 2014. We are well positioned to capitalize on 4G LTE
adoption and NFV/SDN, two trends that will continue to be some of
the key growth drivers for our business in 2015. In addition,
Mavenir continues to build our capabilities in next-generation
solutions to deliver growth and enhanced shareholder value."
In light of these facts, Robbins Arroyo LLP is examining
Mavenir'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.
Mavenir 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.
Mavenir 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.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP