Robbins LLP: Acquisition of Lionbridge Technologies, Inc. (LIOX) by an affiliate of H.I.G. Capital, LLC (Private) May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Lionbridge Technologies, Inc. (NASDAQGS: LIOX) by an affiliate of H.I.G. Capital, LLC (Private). On December 12, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which H.I.G. Capital will acquire Lionbridge. Under the terms of the agreement, Lionbridge shareholders will receive $5.75 for each share of Lionbridge common stock.
Is the Proposed Acquisition Best for Lionbridge and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Lionbridge is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $5.75 merger consideration represents a premium of only 3.20% based on Lionbridge’s closing price on December 9, 2016. This premium is significantly below the average one day premium of nearly 38.96% for comparable transactions within the past three years. Further, the $5.75 merger consideration is significantly below the target price of $7.00 set by an analyst at Barrington Research on May 9, 2016, the target price of $6.50 set by an analyst at Craig-Hallum Capital Group LLC on November 8, 2016, and the target price of $6.35 set by an analyst at Nobel Financial Group on May 6, 2016. In the last three years, Lionbridge traded as high as $7.50 on February 26, 2014, and most recently traded above the merger consideration – at $5.89 – on November 9, 2015.
Lionbridge 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.
Lionbridge 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.