BOSTON, Dec. 23, 2013 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, has commenced an investigation into possible breaches of fiduciary duty by the Board of Directors of Dynamics Research Corporation ("Dynamics Research" or the "Company") (NASDAQ: DRCO) concerning the proposed acquisition of the Company by Engility Holdings, Inc. ("Engility") (NYSE: EGL), in a transaction valued at approximately $130 million. The investigation is also seeking to determine whether Engility aided and abetted the Company's breach of fiduciary duties. Under the terms of the transaction, Engility will acquire each Dynamics Research share for $11.50, a seemingly insufficient premium that may fail to recognize the tremendous growth of the Company.
Indeed, Dynamics Research's share price has been spiking over the last year. Its value has increased nearly 50% in just the past 6 months alone and the growth shows no sign of stopping. The Company has a proven track record of supporting the government's highest priority programs in the science, engineering, IT, and management consulting markets. Dynamics Research's broad portfolio of over 300 active contracts includes prime positions on key Department of Defense and federal civilian agency contract vehicles and will diversify Engility's customer base tremendously. Through its high level, long-standing contracts, Dynamics Research is the prime contractor on approximately 80% of the work that its more than 1,100 employees perform, and has estimated 2013 revenue of $274-277 million and adjusted EBITDA of $24.3-24.7 million. Thus, the so-called "premium" appears to significantly undervalue the Company
Block & Leviton's investigation seeks to determine, among other things, whether Dynamics Research's Directors breached their fiduciary duties by failing to maximize shareholder value in the proposed acquisition by Engility and the fairness by which the Dynamics Research Directors considered and approved the transaction.
If you are a Dynamics Research shareholder and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte, at
(617) 398-5600 or email him at [email protected].
Block & Leviton is a Boston-based law firm representing investors nationwide for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years. This notice may constitute attorney advertising.
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
SOURCE Block & Leviton LLP