Robbins Arroyo LLP Alerts Shareholder that Acquisition of Compuware Corporation (CPWR) by Thoma Bravo, LLC May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Compuware Corporation (NASDAQ: CPWR) by Thoma Bravo, LLC, a private equity investment firm. On September 2, 2014, the companies announced the signing of a definitive merger agreement pursuant to which Thoma Bravo will acquire Compuware. Under the terms of the agreement, holders of Compuware will receive an aggregate value of approximately $10.92 per share for each share of Compuware owned.
Is the Proposed Acquisition Best for Compuware and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Compuware is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $10.92 merger consideration is substantially below the target price set by at least four analysts, including a price of $11.60 set by an analyst at Noble Financial Group on July 30, 2014, and a price of $12.50 set by an analyst at Spin-Off Research on March 1, 2013. In addition, on July 29, 2014, Compuware released its earnings for the first quarter of fiscal year 2015, reporting professional services revenues of $8.4 million, a 9.7% increase compared to the same quarter in 2014. Further, Compuware also revealed new mobile capabilities across the Compuware APMaaS platform in the first quarter 2015, which further extends its leadership in the mobile performance and user experience management. In announcing these results, Compuware’s Chief Executive Officer Bob Paul noted, “We are experiencing solid business momentum and are seeing positives metrics across the board for Q2 and the rest of the fiscal year.”
In light of these facts, Robbins Arroyo LLP is examining Compuware’s board of directors’ decision to merge the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Compuware 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.
Compuware shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.