Robbins Arroyo LLP: Acquisition of Everyday Health, Inc. (EVDY) by j2 Global, Inc.'s (JCOM) Ziff Davis, LLC May Not Be in Sha...
24 Outubro 2016 - 7:14PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Everyday Health, Inc.
(NYSE: EVDY) by Ziff Davis, LLC, which comprises the Digital Media
Division of j2 Global, Inc. (NASDAQGS: JCOM). On October 21, 2016,
the two companies announced the signing of a definitive merger
agreement pursuant to which Ziff Davis will acquire Everyday
Health. Under the terms of the agreement, Everyday Health
shareholders will receive $10.50 in cash for each share of Everyday
Health common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/everyday-health-inc
Is the Proposed Acquisition Best for Everyday Health and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Everyday Health is undertaking a fair process to
obtain maximum value and adequately compensate its
shareholders.
As an initial matter, the $10.50 merger consideration represents
a premium of only 11.7% based on Everyday Health's closing price on
October 20, 2016. This premium is significantly below the average
one day premium of nearly 54.4% for comparable transactions within
the past year. Further, the $10.50 merger consideration is
significantly below the target price of $17.00 set by an analyst at
Credit Suisse on July 15, 2016, the target price of $13.00 set by
an analyst at Leerink Partners LLC on June 24, 2016, and the target
price of $12.00 set by an analyst at SunTrust Robinson Humphrey on
October 13, 2016. In the last three years, Everyday Health traded
as high as $19.89 on June 23, 2014, and most recently traded above
the merger consideration – at $10.56 – on November 9, 2015.
On August 4, 2016, Everyday Health reported strong earnings
results for its second quarter 2016. Total revenue was $57.7
million, a 5% year-over-year increase for the second quarter and an
$18% year-over-year increase for the first half of 2016. Everyday
Health beat consensus analyst expectations for Adjusted Net Income,
Revenue, and Adjusted EPS in three out of the last four quarters.
In commenting on these results, Everyday Health Co-Founder and
Chief Executive Officer Ben Wolin remarked, "We delivered strong
second quarter and first half 2016 results, which demonstrate that
the strategic investments we have made are paying off. We are
pleased to see our consumer advertising growing again, and we are
very excited about the solid growth and revenue opportunity across
our professional and payer/provider businesses."
In light of these facts, Robbins Arroyo LLP is examining
Everyday Health's board of directors' decision to sell the company
now rather than allow shareholders to continue to participate in
the company's continued success and future growth prospects.
Everyday Health shareholders have the option to file a class
action lawsuit to ensure the board of directors obtains the best
possible price for shareholders and the disclosure of material
information. Everyday Health shareholders interested in information
about their rights and potential remedies can contact attorney
Darnell R. Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com,
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.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20161024006532/en/
Robbins Arroyo LLPDarnell R. Donahue619-525-3990 or Toll Free
800-350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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