If you thought that the $19.25 per share price that Imprivata Inc (NYSE: IMPR) is being offered in a buyout deal is great enough, you haven’t seen what Robbins Arroyo LLP is up to. Shareholder rights attorneys at the law firm are investigating Imprivata and certain of its officers. The focus of the investigation is to find out if the management of the company negotiated for the best value on behalf of shareholders in agreeing to sell the company to Thoma Bravo for a total value of $544 million.
What is happening?
Imprivata Inc. (NYSE: IMPR) announced on July 13 that it had agreed to be acquired by private-equity firm Thoma Bravo in a deal that values the healthcare IT company at $544 million or $19.25 per share. That is a premium of nearly 33% over the stock’s closing price on the day before the buyout agreement was made public.
Is Imprivata Inc. (NYSE: IMPR) worth much more?
As much as Thoma Bravo’s buyout offer to Imprivata Inc. (NYSE: IMPR) indicates a decent premium of 33%, some believe that the offer of $19.25 doesn’t represent the true value of the company. That is why the attorneys at Robbins Arroyo are asking why the management accepted the price in the first place.
According to Robbins Arroyo, the merger consideration of $19.25 is below the target price of $20 that an analyst at Stifel has on the shares of Imprivata. As if that is not enough, the attorneys claim that not long ago shares of Imprivata were trading at $19.70, which is above the merge consideration. Furthermore, the attorneys allege that shares of Imprivata changed hands at a high of $21.63 in the last three years. In a nutshell, the attorneys believe that Imprivata could be worth more than the $19.25 per share that the management has settled for in the merger.
The fact that Imprivata Inc (NYSE:IMPR) reported a 23% increase in revenue in 1Q2016 and the management’s earlier promise that the company could turn a profit this year also make the attorneys want to know what happened.
The investigation by Robbins Arroyo could lead to a class-action suit against the management of Imprivata Inc. (NYSE: IMPR). Shareholders of Imprivata have been encouraged to contact the law firm to discuss their rights in the potential suit.