NEW YORK, May 24, 2016 /PRNewswire/ -- Milberg LLP is investigating possible breaches of fiduciary duty and other violations of law in connection with the proposed acquisition of Xura, Inc., (MESG), by affiliates of Siris Capital Group, LLC ("Siris").
On May 23, 2016, Xura announced that it had entered into a definitive agreement to be acquired by Siris for all outstanding shares of Xura's common stock in a deal valued at approximately $643 million. Under the terms of the agreement, shareholders of Xura will receive $25.00 in cash for each share of Xura common stock.
Milberg LLP's investigation is focusing on the potential unfairness of the consideration being provided to Xura's stockholders and the process by which Xura's Board of Directors considered and approved the proposed deal. Under the circumstances, including as described below, Milberg LLP is scrutinizing the decision of Xura's Board to sell the company at this time, which will deny Xura's public stockholders the opportunity to participate and share in Xura's future prospects for business and financial success and growth.
Among other things, the $25.00 merger consideration is substantially below multiple recent analyst target price estimates, and is below Xura's recent trading prices. For instance, Xura stock has traded above the proposed $25.00 per share merger consideration as recently as late 2015. Also, Xura traded at a 52-week high of $26.63 per share and, according to at least one analyst, Xura has a high target price of $30.00, well above the amount that Xura shareholders would receive under the proposed sale. In addition, on April 15, 2016, Xura reported very positive preliminary fourth quarter 2015 financial results, with total revenue for the quarter of $82 million (28% over to the same period in 2015) and adjusted EBITDA of $14 million (250% over the same period in 2015).
Concerned investors are invited to contact the Milberg attorneys listed below to discuss the investigation, their rights, or potential remedies.
Founded in 1965, Milberg LLP was one of the first law firms to prosecute class actions in federal courts on behalf of investors and consumers and has been representing investors and consumers for more than four decades. Milberg LLP is widely recognized as a leader in defending the rights of victims of corporate and other large-scale wrongdoing, serving as lead counsel in federal and state courts throughout the United States. For more information, please visit the firm website at www.milberg.com.
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SOURCE Milberg LLP