Acquisition of SHFL entertainment, Inc. by Bally Technologies, Inc. May Not Be in the Best Interests of SHFL entertainment Shareholders
SAN DIEGO and LAS VEGAS, July 16, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of SHFL entertainment, Inc. (NASDAQ: SHFL) ("SHFL"), by Bally Technologies, Inc. (NYSE: BYI) ("Bally"). On July 16, 2013, the two companies announced a definitive merger agreement in which Bally will acquire all of the outstanding shares of SHFL at a per share price of $23.25 in cash.
Is the Acquisition Best for SHFL Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at SHFL is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger. The $23.25 merger consideration represents a premium of 24.3% based on SHFL's closing price on July 15, 2013, which is substantially below the average premium of 49.43% for comparable transactions in the past five years.
Further, on June 4, 2013, SHFL reported record revenue and net income for the second quarter ended April 30, 2013. Specifically, the company reported total revenue growth to $77.4 million, an increase of 17% from the prior year. SHFL also reported that its net income rose 22% to a record $11.8 million, compared to the same quarter 2012. In addition, the company reported a year-over-year forty basis point increase in gross margin to 65%. In announcing the company's quarterly results, SHFL's Chief Executive Officer Gavin Isaacs stated, "Given the 22% increase in net profit that we announced today, we strongly believe that consistent execution against our strategic initiatives is the right blueprint for building long-term, sustainable value for our shareholders."
Given these facts, Robbins Arroyo is examining SHFL's board of directors' decision to be acquired by Bally now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
SHFL shareholders have the option to file a class action lawsuit to secure the best possible price for shareholders and the disclosure of material information to shareholders. SHFL shareholders interested in information about their rights and potential remedies can contact Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsarroyo.com.
Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/shfl-entertainment-inc/
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SOURCE Robbins Arroyo LLP