NEW YORK, June 24, 2013 /PRNewswire/ -- Tripp Levy PLLC, a leading national securities and shareholder rights law firm, announces that it is investigating the acquisition of Keynote Systems Inc. on behalf of shareholders. Keynote announced it has entered into a definitive agreement to be acquired by Thoma Bravo, LLC in an all-cash transaction valued at approximately $395 million. Under the terms of the agreement, pending shareholder approval, Keynote stockholders will receive $20.00 in cash for each share of Keynote common stock.
The investigation concerns whether the senior management and board of directors of Keynote breached their fiduciary duties to shareholders by not engaging in a full and fair auction to sell the company so that shareholders could obtain the maximum value for their shares while, at the same time, seeking personal pay packages for themselves. Indeed, it was reported that senior management will be staying on with the company. While the price is a premium to where the stock was trading, the company has approx. $58 million in cash and no debt, reflecting a cash per share value of $3.14 per share, which will go to the acquirers of the company, making the actual acquisition price to them of only $16.86 per share, which is well below the company's true inherent value. In addition, the book value of the company is approx. $13 per share, making this acquisition less than 1.6x book, which again is well less than recent comparable transactions.
If you are a shareholder of Keynote and would like additional information as to how you can participate with other shareholders seeking a higher price at no cost or expense, please contact us toll free at 1-877-772-3975 or email at email@example.com
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SOURCE Tripp Levy PLLC