Anaren and Veritas Capital Merger May Not Be In Anaren Shareholders' Best Interests
SAN DIEGO and SYRACUSE, N.Y., Nov. 4, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the merger of Anaren, Inc. (NASDAQGS: ANEN) with an affiliate of The Veritas Capital Fund IV, L.P.
On November 4, 2013, Anaren and Veritas Capital announced the signing of a definitive merger agreement pursuant to which Veritas Capital will acquire Anaren. Under the terms of the agreement, holders of Anaren will receive $28.00 in cash for each share owned.
Is the Merger Best for Anaren and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Anaren is undertaking a fair process to obtain maximum value and adequately compensate Anaren shareholders in the merger. Notably, Anaren is currently experiencing success and growth in its business prospects, as indicated in its October 29, 2013 press release announcing the company's financial results for its first quarter 2014. In particular, Anaren reported increases in:
- Generally Accepted Accounting Principles operating income, up 9.2% to $4.4 million compared to $4 million in the first quarter of 2013;
- Operating cash flow, increased to $3.5 million compared to $2.1 million in the first quarter of fiscal year 2013 and;
- Generally Accepted Accounting Principles net income, up 4.5% compared to the same quarter in the previous year.
In announcing these results, Lawrence A. Sala, President, Chairman and Chief Executive Officer of Anaren, also noted improvements to the number or orders its Space & Defense Group received as well as the increase in sales for its Wireless Group, concluding: "We continue to expect an increase in sales and profitability for both groups in fiscal 2014."
Given these facts, Robbins Arroyo LLP is examining Anaren's board of directors' decision to sell the company to Veritas Capital now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects, and whether they are seeking to benefit themselves.
Anaren 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 decide whether to tender their shares in an informed manner. Anaren shareholders interested in information about their rights and potential remedies can contact attorney 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 law 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.
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SOURCE Robbins Arroyo LLP