Robbins Arroyo LLP: Acquisition of Constant Contact, Inc. (CTCT) by Endurance International Group (EIGI) May Not Be in Shareh...
02 Novembre 2015 - 9:29PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Constant Contact, Inc.
(NASDAQ: CTCT) by Endurance International Group (NASDAQ: EIGI). On
November 2, 2015, the two companies announced the signing of a
definitive merger agreement pursuant to which Endurance
International will acquire Constant Contact. Under the terms of the
agreement, Constant Contact shareholders will receive $32.00 in
cash for each share of Constant Contact common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/constant-contact-inc-nov-2015
Is the Proposed Acquisition Best for Constant Contact and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Constant Contact is undertaking a fair process to
obtain maximum value and adequately compensate its
shareholders.
As an initial matter, the $32.00 merger consideration represents
a premium of only 27.8% based on Constant Contact's one-month
average closing price. This premium is significantly below the
average one-month premium of nearly 42.3% for comparable
transactions within the past three years. Further, the $32.00
merger consideration is significantly below the target prices of
five analysts ranging from $50.00 set by an analyst at National
Securities on May 1, 2015, to $35.00 set by an analyst at Robert
Baird on July 24, 2015. In the last three years, Constant Contact
traded as high as $43.18 on March 4, 2015, and most recently traded
above the merger consideration – at $36.23 – on April 30, 2015.
On July 23, 2015, Constant Contact reported strong earnings
results for its second quarter 2015. Revenue for the quarter was
$91.5 million, an increase of 12.6% compared to the same period
last year. GAAP net income for the quarter was $3.8 million, an
increase of 89.3% compared to the same period last year.
Additionally, Constant Contact has beat consensus analyst estimates
for adjusted EPS and adjusted net income in every quarter for the
past nine quarters. In commenting on these results, Constant
Contact Chief Executive Officer Gail Goodman remarked, "We
delivered revenue in line with expectations and profitability that
meaningfully exceeded our guidance for the quarter. We made good
progress on multiple fronts in the second quarter, and are excited
about the opportunities ahead. We remain confident in our strategy
and ability to deliver continued revenue growth, while improving
margins and expanding profitability."
In light of these facts, Robbins Arroyo LLP is examining
Constant Contact'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.
Constant Contact 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. Constant Contact 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/20151102006719/en/
Robbins Arroyo LLPDarnell R. Donahue600 B Street, Suite 1900San
Diego, CA 92101(619) 525-3990 or Toll Free (800)
350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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