Robbins Arroyo LLP: Acquisition of Qlik Technologies, Inc. (QLIK) by Thoma Bravo May Not Be in Shareholders’ Best Interests
Shareholder rights attorneys at Robbins Arroyo LLP is investigating the proposed acquisition of Qlik Technologies, Inc. (Nasdaq: QLIK) by Thoma Bravo LLC. On June 2, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Thoma Bravo will acquire Qlik Technologies. Under the terms of the agreement, Qlik Technologies shareholders will receive $30.50 for each share of Qlik Technologies common stock.
Is the Proposed Acquisition Best for Qlik Technologies and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Qlik Technologies is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $30.50 merger consideration represents a premium of only 14.4% based on Qlik Technologies’ last unaffected closing price on March 3, 2016. This premium is significantly below the average one-day premium of nearly 28% for comparable transactions within the past five years. Further, there are currently 17 analysts with target prices significantly above the merger consideration of $30.50, most notably the target prices of $52.00 set by an analyst at D.A. Davidson & Co on July 24, 2015, $45.00 set by an analyst at Summit Research Partners LLC on July 23, 2015, and $40.00 set by an analyst at UBS on April 29, 2016. In the last three years, Qlik Technologies traded as high as $42.18 on August 8, 2015, and most recently traded above the merger consideration – at $32.87 – on May 31, 2016.
On April 28, 2016, Qlik Technologies reported strong earnings results for its first quarter 2016. Qlik Technologies reported total revenue of $138 million for the three months ended March 31, 2016, a 15% increase from the same period of the prior year. Qlik Technologies also reported cash and cash equivalents of $370 million for the three months ended March 31, 2016, an increase of 16% from the same period of the prior year. In commenting on these results, Qlik Technologies Chief Executive Officer Lars Bjork remarked, “We are pleased with our performance in the first quarter. Our balanced business model and continued momentum with Qlik Sense® enabled us to deliver total revenue and non-GAAP operating results that exceeded the high-end of our first quarter guidance ranges. We are capitalizing on our growing market opportunity and the rising awareness for analytics and self-service visualization across all the customer segments we serve.”
In light of these facts, Robbins Arroyo LLP is examining Qlik Technologies’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.
Qlik Technologies 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. Qlik Technologies 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.
Send This Post