Solera Holdings Inc (NYSE:SLH) has announced that it has entered into a merger agreement with Vista Equity Partners. As per the deal, Vista will acquire Solera, inclusive of its current debt, at a price of $6.5 billion. However, the deal has also attracted the attention of Rigrodsky & Long, P.A. who have initiated an investigation into the possible sales agreement. The directors of SLH might face charges of fiduciary and violation of regulations.
As per the details of the transaction, SLH shareholders would be awarded a premium of $55.85 per share in cash. The two companies aim to accomplish their compliance with regulations and closing conditions, by 1Q2016. The CEO of Solera, Tony Aquila, stated that the transaction would provide the company shareholders with immediate premium returns. He was also of the view that the merger would result in improved flexibility and superior global leadership for marketing SLH products.
The litigation against the company rests on the fact that at least one analyst has issued a target price of $56 for SLH. However, the analysts at Zacks have issued a short-term rating of hold for SLH shares. The majority of analysts have issued an average target price for the stock at $54.57, while the company’s 52-week high is currently $59.53. Recently, the company also disclosed an insider transaction conducted in the month of March. The CEO had sold a total of 21,000 shares at a share price of $50.5, on March 12, 2015.
The recent disclosure bought the inside ownership of the company to a total of 0.9%. Furthermore, the past 3-months have seen a decline of 1.88% in terms of total institutional ownership of the company. Overall, the company shares have also experienced a decline of 6.95% in terms of share value, in the past year. However, the recent deals signed by the company, have helped the stock move up to its current position.
Solera Holdings Inc (NYSE:SLH) reported a surge of 2.8% in its share value, after trading 6.03 million shares during the September 22 session, to reach a close at $55.71.