Robbins LLP: Acquisition of Advent Software, Inc. (ADVS) by SS&C Technologies Holdings, Inc. (SSNC) May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Advent Software, Inc. (NASDAQ: ADVS) by SS&C Technologies Holdings, Inc. (NASDAQ: SSNC). On February 2, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which SS&C Technologies will acquire Advent. Under the terms of the agreement, Advent shareholders will receive $44.25 for each share of Advent common stock.
Is the Proposed Acquisition Best for Advent and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Advent is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $44.25 merger consideration represents a premium of only 5.7% based on Advent’s closing price on January 30, 2015. This premium is significantly below the average one-day premium of nearly 17.3% for comparable transactions within the past year. Further, the $44.25 merger consideration is below the target price of $45.00 set by an analyst at Sidoti & Company LLC on February 3, 2015.
On February 2, 2015, Advent released its earnings results for its fourth quarter 2014, reporting strong quarterly earnings. The company reported fourth quarter revenue of $100.7 million, compared to $97.6 million in the fourth quarter of 2013, a 3% increase. In addition, Advent reported a fourth quarter net income increase of 33% over the same quarter in the prior year, and a 75 percent increase in net income for the year ended December 31, 2014, or $50.3 million compared to $28.8 million for 2013. Additionally, Advent has beat consensus analyst estimates for adjusted EPS every quarter of the past year and has beat consensus analyst estimates for sales in three out of its past four quarters.
In light of these facts, Robbins LLP is examining Advent 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.
Advent 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.
Advent Software shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.