Robbins Arroyo LLP: Acquisition of Skullcandy, Inc. (SKUL) by Incipio LLC May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Skullcandy, Inc. (NASDAQ: SKUL) by Incipio LLC. On June 24, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Incipio will acquire Skullcandy. Under the terms of the agreement, Skullcandy shareholders will receive $5.75 for each share of Skullcandy common stock.
Is the Proposed Acquisition Best for Skullcandy and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Skullcandy is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $5.75 merger consideration represents a premium of only 29.20% based on Skullcandy’s last unaffected closing price on June 22, 2016. This premium is significantly below the average one-day premium of nearly 105.48% for comparable transactions within the past year. Further, the $5.75 merger consideration is significantly below the target price of $6.00 set by analysts at Roth Capital Partners and Wunderlich Securities on June 15 and 24, 2016, respectively. In the last three years, Skullcandy traded as high as $11.83 on March 6, 2015, and most recently traded above the merger consideration – at $6.36 – on November 5, 2015.
In light of these facts, Robbins Arroyo LLP is examining Skullcandy’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.
Skullcandy 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. Skullcandy 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.