Acquisition of Telular Corporation by Avista Capital Partners May Not Be in the Best Interests of Telular Shareholders
Robbins LLP is investigating the acquisition of Telular Corporation (Nasdaq: WRLS) by Avista Capital Partners, a Canadian private equity firm. On April 29, 2013, the companies jointly announced a definitive agreement whereby an entity controlled by Avista will commence a tender offer to acquire all outstanding shares of Telular common stock for $12.61 in cash. The proposed acquisition is expected to close within 50 to 75 days.
The Board of Directors’ Actions May Prevent Telular Shareholders from Receiving Maximum Value for Their Stock
Robbins LLP’s investigation focuses on whether the board of directors at Telular is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the acquisition. At least one analyst, Loewen, Ondaatje, McCutcheon Limited, projects a target price of $18.50, well-above the current $12.61 offer price.
Is the Acquisition Best for Telular and Its Shareholders?
On January 31, 2013, Telular released its earnings for the first quarter 2013. Total revenue from Telguard and TankLink, the company’s Event Monitoring Segment, increased to $15.6 million, or 17%, from the year prior. Current President and Chief Executive Officer Joe Beatty was quoted as saying, “We had a strong start to 2013, as our business units combined to deliver strong growth in Adjusted EBITDA during the first quarter. Looking ahead, we have a very well defined growth strategy centered on releasing key service enhancements during the year and leveraging these new services to improve our market position in each line of business.”
Given these facts, the firm is examining the board of directors’ decision to sell Telular now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Telular shareholders have the option to file a class action lawsuit to secure the best possible price for shareholders and the disclosure of material information so shareholders can vote on the transaction in an informed manner.
Telular shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Darnell R. Donahue at (800) 350-6003.