Robbins LLP: Acquisition of TIBCO Software Inc. (TIBX) by Vista Equity Partners LLC May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of TIBCO Software Inc. (NasdaqGS: TIBX) by Vista Equity Partners LLC, a private equity firm. On September 29, 2014, the companies announced that TIBCO and Vista signed a definitive merger agreement pursuant to which Vista will acquire all outstanding shares of TIBCO for $24.00 per share in cash.
Is the Proposed Acquisition Best for TIBCO and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at TIBCO is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $24.00 consideration is below the target price of $25.00 set by an analyst at CM Research on July 16, 2014. Further, on September 18, 2014, TIBCO released its third quarter 2014 earnings, in which the company reported strong increases in subscriptions and related revenue. Notably, TIBCO reported that non-GAAP subscription revenue increased 76% sequentially from the second quarter of fiscal year 2014 to $13.2 million. Additionally, TIBCO announced that it had signed over 100 customers to new Analytics subscription contracts and closed 110 deals over $100,000 and had 14 deals over $1 million in license revenue. In commenting on these results, TIBCO’s chairman and Chief Executive Officer noted, “This quarter, we accelerated a number of strategic and operational changes that resulted in strong growth of subscription sales and a solid sequential improvement in our Spotfire business.”
In light of these facts, Robbins LLP is examining TIBCO’s 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.
TIBCO 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.
TIBCO 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.