Mindspeed Technologies, Inc. to Be Acquired by M/A-Com Technology Solutions Holdings, Inc. May Not Be in Mindspeed Technologies Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Mindspeed Technologies, Inc. (NASDAQ: MSPD) by M/A-COM Technology Solutions Holdings, Inc. (NASDAQ: MTSI). On November 5, 2013, Mindspeed announced the signing of a definitive merger agreement pursuant to which M/A-COM will acquire Mindspeed for $5.05 for each share in a cash tender offer.
Is the Merger Best for Mindspeed and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Mindspeed is undertaking a fair process to obtain maximum value and adequately compensate Mindspeed shareholders in the merger. Notably, Mindspeed traded above the offer price as recently as February 22, 2013, and traded as high as $5.27 on February 19, 2013, closing at $5.23 that same day. Further, Mindspeed is currently experiencing growth in its business prospects, as indicated in its November 5, 2013 press release announcing the company’s financial results for its fourth quarter 2013. In particular, Mindspeed reported increases in:
• Non-GAAP operating profit for the fiscal fourth quarter of 2013 of approximately $1.6 million, compared to a non-GAAP operating profit of $644,000 in the prior fiscal quarter and;
• Non-GAAP net income for the fiscal fourth quarter of 2013 of $874,000, compared to a non-GAAP net loss of $461,000 in the prior fiscal quarter.
Given these facts, Robbins Arroyo LLP is examining the Mindspeed board of directors’ decision to sell the company to M/A-COM now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects, and whether they are seeking to benefit themselves.
Mindspeed shareholders have the option to file a class action lawsuit to secure the best possible price for shareholders and the disclosure of material information so shareholders can decide whether to tender their shares in an informed manner.
Mindspeed 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.