Robbins Arroyo LLP: Acquisition of Cyan, Inc. (CYNI) by Ciena Corporation (CIEN) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Cyan, Inc. (NYSE: CYNI) by Ciena Corporation (NYSE: CIEN). On May 4, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Ciena will acquire Cyan. Under the terms of the agreement, Cyan shareholders will receive a combination of stock and cash valued at $4.75 for each share of Cyan common stock.
Is the Proposed Acquisition Best for Cyan and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Cyan is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $4.75 merger consideration represents a premium of only 11.8% based on Cyan’s closing price on April 2, 2015. This premium is significantly below the average one month premium of nearly 50.6% for comparable transactions within the past year.
Also on May 4, 2015, Cyan reported strong earnings results for its first quarter 2015. Revenue for the first quarter fiscal 2015 grew 89% to $36.0 million from $19.0 million for the comparable quarter in fiscal 2014. Furthermore, Cyan beat consensus analyst estimates for sales in three out of the last four quarters and consensus analyst estimates for EPS Adjusted and Net Income Adjusted in the last four quarters.
In the last three years, Cyan traded as high as $15.05 on May 14, 2013. Most recently, Cyan traded above the offer price – at $5.29 – on January 6, 2014.
In light of these facts, Robbins Arroyo LLP is examining Cyan’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.
Cyan 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.
Cyan 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.