Robbins Umeda LLP Announces an Investigation of the Acquisition of RightNow Technologies, Inc. by Oracle Corporation
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of RightNow Technologies, Inc. (NASDAQ: RNOW) in connection with their efforts to sell the company to Oracle Corporation (NYSE: ORCL)
On October 24, 2011, RightNow announced that it had entered into a definitive merger agreement pursuant to which Oracle will acquire all outstanding shares of the company in a cash transaction. Pursuant to the agreement, Rightnow shareholders will receive $43.00 for each share of the company they own. The transaction is expected to close by late 2011 or early 2012.
Robbins Umeda LLP’s investigation focuses on whether RightNow’s board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company’s positive financial results. On October 24, 2011, Rightnow reported strong financial results for the third quarter of 2011 that greatly exceed analyst expectations. The company reported non-GAAP net income of $0.19 per share, a 26.67% increase over the $0.15 of EPS reported during the same period last year, and above analyst EPS projections of $0.15. Additionally, RightNow reported revenue of $57.7 million for the quarter, an 18.72% increase over the $48.6 million reported during the same period of the previous year, and better than analyst revenue estimates of $57.22 million.
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