SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson & Weaver, LLP has launched an investigation into whether the board members of Conversant, Inc. (NASDAQ: CNVR) breached their fiduciary duties in connection with the proposed sale of the Company to Alliance Data Systems Corporation.
Conversant provides various digital marketing services in the United States and internationally.
On September 11, 2014, Conversant, Inc. announced it had signed a definitive agreement to be acquired by Alliance Data Systems Corporation. Under the terms of the agreement, Alliance Data will acquire all outstanding shares of Conversant for a combination of cash and stock valued at approximately $2.3 billion, or $35 per Conversant share. More specifically, Conversant shareholders stand to receive $18.20 in ADS stock and $16.80 in cash for each share they own of Conversant common stock. The ratio of stock to cash, however, is subject to change based on subsequent movements in ADS’s stock price. Following the transaction, Conversant shareholders are expected to own approximately 7% of the post-transaction entity.
The investigation will determine whether Conversant’s Board of Directors breached their fiduciary duties to stockholders by failing to satisfactorily shop the Company before entering into this agreement and whether the proposed consideration adequately values the Company’s common stock. Among other things, Johnson & Weaver is concerned that the $35 per share agreed to by Conversant’s board of directors adequately reflects the Company’s outstanding growth prospects, as revenue is expected to increase sharply in the coming years. Moreover, Conversant’s management is expected to play a major role in the post-transaction company, which raises questions about conflicts of interest and whether the deal is, in fact, in the best interests of Conversant’s shareholders.
If you are a shareholder of Conversant and believe that the proposed buyout price is too low or confusing and you are interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-814-4471.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.