Robbins Arroyo LLP: Acquisition of Imprivata, Inc. (IMPR) by Thoma Bravo LLC May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Imprivata, Inc. (NYSE: IMPR) by Thoma Bravo LLC. On July 13, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Thomas Bravo will acquire Imprivata. Under the terms of the agreement, Imprivata shareholders will receive $19.25 in cash for each share of Imprivata common stock.
Is the Proposed Acquisition Best for Imprivata and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Imprivata is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $19.25 merger consideration is below the target price of $20.00 set by an analyst at Stifel on October 14, 2015. In the last three years, Imprivata traded as high as $21.63 on August 19, 2015, and most recently traded above the merger consideration – at $19.70 – on September 25, 2015.
On May 3, 2016, Imprivata reported strong earnings results for its first quarter 2016. Imprivata reported revenue of $31.5 million for the three months ended March 31, 2016, a 23% increase from the same period of the prior year. Additionally, Imprivata has beaten analyst estimates for adjusted earnings per share, revenue, and adjusted net income for the past four quarters. In commenting on these results, Imprivata President and Chief Executive Officer Omar Hussain remarked, “Our first quarter was a great first step towards achieving our growth and profitability goals for 2016…Our core business is strong, we are seeing substantial cross-selling opportunities, and Imprivata is increasingly viewed as a strategic partner in a time when cybersecurity is a major concern for the healthcare industry.”
In light of these facts, Robbins Arroyo LLP is examining Imprivata’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.
Imprivata 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.
Imprivata 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.