Robbins Arroyo LLP: Acquisition of MedAssets, Inc. (MDAS) by Pamploma Capital Management May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of MedAssets, Inc. (NASDAQ: MDAS) by Pamploma Capital Management. On November 2, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Pamploma will acquire MedAssets. Under the terms of the agreement, MedAssets shareholders will receive $31.35 in cash for each share of MedAssets common stock.
Is the Proposed Acquisition Best for MedAssets and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at MedAssets is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $31.35 merger consideration represents a premium of only 32.4% based on MedAssets’ closing price on October 30, 2015. This premium is significantly below the average one-day premium of nearly 59.5% for comparable transactions within the past year.
On November 2, 2015, MedAssets reported strong earnings results for its third quarter 2015. Total net revenue for the third quarter of 2015 increased 8.1% to $190.0 million from $175.7 million for the third quarter of 2014. Excluding the revenue contribution from Sg2 (acquired on September 22, 2014), total net revenue growth was 2.3% on a year-over-year basis. MedAssets beat consensus analyst estimates for adjusted EPS and adjusted net income in three out of the last four quarters and beat estimates for sales in the last four quarters. In commenting on these results, MedAssets Chairman and Chief Executive Officer Halsey Wise remarked, “Since February, our executive leadership team has been developing and implementing a business transformation and value creation plan. We have been making substantial progress, with our third quarter 2015 financial results coming in near or above the high end of our previous guidance for the quarter on all measures. This performance is a testament to our employees’ commitment, dedication and hard work to executing our plan.”
In light of these facts, Robbins Arroyo LLP is examining MedAssets’ 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.
MedAssets 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.
MedAssets 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.