Robbins Arroyo LLP: Acquisition of Opower, Inc. (OPWR) by Oracle Corporation (ORCL) May Not Be in Shareholders' Best Interests
02 Maio 2016 - 3:15PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Opower, Inc. (NYSE: OPWR)
by Oracle Corporation (NYSE: ORCL). On May 2, 2016, the two
companies announced the signing of a definitive merger agreement
pursuant to which Oracle will acquire Opower. Under the terms of
the agreement, Opower shareholders will receive $10.30 in cash for
each share of Opower common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/opower-inc
Is the Proposed Acquisition Best for Opower and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Opower is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $10.30 merger consideration represents
a premium of only 30.4% based on Opower's closing price on April
29, 2016. This premium is below the average one day premium of
37.6% for comparable transactions within the past five years.
Further, the $10.30 merger consideration is below the target price
of $11.50 set by an analyst at Cowen on March 1, 2016. In the last
three years, Opower traded as high as $26.00 on April 4, 2014, and
most recently traded above the merger consideration – at $10.41 –
on January 6, 2016.
On February 29, 2016, Opower reported strong earnings results
for its fourth quarter and full year 2015. Total revenue for the
fourth quarter of 2015 was $40.5 million, an increase of 16% from
the comparable period in 2014. Large, long-term contracts signed in
2015 increased Opower’s backlog to $480 million as of the end of
2015, nearly double what it was at the end of 2014. Opower also
successfully launched a series of new products including NextWeb
and Bill Advisor; and completed the rollout of its software
platform. Opower beat consensus analyst estimates for revenue and
adjusted net income in last four quarters. In commenting on these
results, Opower Chief Executive Officer Dan Yates remarked, "2015
was a strong year for Opower. We renewed and expanded contracts
with our three largest clients - Pacific Gas and Electric
(PG&E), National Grid, and Exelon - and added significant new
clients including Con Edison in New York and a major European
utility, each of which signed in Q4. We’re seeing great traction
with our Customer Care offerings – Digital Engagement and Bill
Advisor. We now have an expanded product set that qualifies us to
address an even wider variety of utility challenges."
In light of these facts, Robbins Arroyo LLP is examining
Opower'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.
Opower 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.
Opower 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 websiteOP.
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/20160502006036/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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