Robbins Arroyo LLP: Acquisition of Lexmark International, Inc. (LXK) by Apex Technology Co., Ltd., Legend Capital, and PAG Asia Capital May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Lexmark International, Inc. (NYSE:LXK) by a consortium of investors that includes Apex Technology Co., Ltd., Legend Capital, and PAG Asia Capital (the “Consortium). On April 19, 2016, Lexmark and the Consortium announced the signing of a definitive merger agreement pursuant to which the Consortium will acquire Lexmark. Under the terms of the agreement, Lexmark shareholders will receive $40.50 for each share of Lexmark common stock.
Is the Proposed Acquisition Best for Lexmark and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Lexmark is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, in the last three years Lexmark traded as high as $51.77 on August 14, 2014, and most recently traded above the merger consideration – at $42.35 – on July 21, 2015.
On February 23, 2016, Lexmark reported strong earnings results for its fourth quarter 2015. Lexmark reported GAAP gross profit of $385 million for the three months ended December 31, 2015, a 6.9% increase from the same period of the prior year. Lexmark also reported adjusted EBITDA of $156 million for the three months ended December 31, 2015, a 2.6% increase from the same period of the prior year. Lexmark also beat analyst estimates for adjusted net income adjusted and earnings per share for the past four quarters. In commenting on these results, Lexmark Chairman and Chief Executive Officer Paul Rooke remarked, “Lexmark had a good fourth quarter. We more than doubled fourth quarter Enterprise Software non-GAAP operating income margin year to year to 24 percent, and delivered full year MPS revenue growth for the 16th consecutive year… Last week, we demonstrated our ongoing commitment to rewarding our shareholders with the announcement of our 18th consecutive quarterly dividend.”
In light of these facts, Robbins Arroyo LLP is examining Lexmark’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.
Lexmark 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.
Lexmark 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.
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