SAN DIEGO & UNION CITY, Calif.--(BUSINESS WIRE)--Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Abaxis, Inc. (NASDAQ: ABAX) by Zoetis Inc. (NYSE: ZTS). On May 16, 2018, the two companies announced the signing of a definitive merger agreement pursuant to which Zoetis will acquire Abaxis. Under the terms of the agreement, Abaxis shareholders will receive $83.00 in cash for each share of Abaxis common stock.
View this information on the law firm's Shareholder Rights Blog: http://www.robbinsarroyo.com/abaxis-inc
Is the Proposed Acquisition Best for Abaxis and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Abaxis is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $83.00 merger consideration represents a premium of only 18.1% based on Abaxis' average closing price for the month prior to the announcement of the acquisition. This premium is significantly below the average 1-month premium of nearly 34.35% for comparable transactions within the past five years. Further, the $83.00 merger consideration is significantly below the target price of $90.00 initially set by an analyst at Northcoast Research on January 29, 2018 and reiterated as recently as April 27, 2018, and $87.00 set by an analyst at Sidoti & Company LLC on January 26, 2018.
On April 26, 2018, Abaxis reported strong earnings results for its fourth quarter and full year 2018. Diluted net income per share was $0.43 for its fourth quarter 2018, an increase from $0.33 in the same period for the previous year. Furthermore, in its fourth quarter 2018 Abaxis recorded revenues of $67.9 million, a 17% increase from the same period in the previous year, as well as full year 2018 revenues of $244.7 million, up 8% from the prior fiscal year. Additionally, Abaxis beat analyst estimates for adjusted EPS and adjusted net income in three of its last four quarters. In commenting on these results, Abaxis Chairman & CEO, Clint Severson, remarked, "This is our second consecutive quarter of double-digit revenue growth and we are pleased with the momentum in our business…[w]e look forward to strong growth in fiscal 2019 and we are optimistic about our future."
In light of these facts, Robbins Arroyo LLP is examining Abaxis' 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.
Abaxis 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. Abaxis shareholders interested in information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, email@example.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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