Robbins Arroyo LLP: Acquisition of Conversant, Inc. (CNVR) by Alliance Data Systems Corporation (ADS) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Conversant, Inc. (NASDAQ: CNVR) by Alliance Data Systems (NYSE: ADS). On September 11, 2014, the companies announced the signing of a definitive merger agreement pursuant to which Alliance Data will acquire Conversant the equivalent of $18.20 in shares of Alliance Data stock and $16.80 in cash. Under the terms of the agreement, Conversant shareholders will receive a total $35.00 for each share of Conversant they own.
Is the Proposed Acquisition Best for Conversant and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Conversant is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, on August 6, 2014, Conversant issued its financial results for the company’s second quarter of 2014 reporting strong increases in revenue and free cash flow. Specifically, Conversant’s revenue reached $137.4 million, a 7% increase over the same quarter 2013. In addition, the company reported a 21% year-over-year increase in free cash flow for the six months ended June 30, 2014 of $88.7 million. Conversant also announced several strategic technological achievements during the quarter that were accompanied by a 9% expansion in total headcount in 2014 undertaken to accelerate the company’s growth plans. In commenting on these results, Conversant president and CEO, John Giuliani, stated, “I am encouraged by our recent progress on integration initiatives and key investments in the areas of product, sales and technology that strengthen our foundation to drive stronger growth and will maximize our longer-term value for clients, employees and shareholders.”
In light of these facts, Robbins Arroyo LLP is examining Conversant’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.
Conversant 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. Conversant 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.