A lawsuit was filed by an investor in shares of Ebix Inc (NASDAQ:EBIX) in effort to block the proposed takeover and other current NASDAQ:EBIX stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 05/14/2013 -- An investor, who currently holds shares of Ebix Inc (NASDAQ:EBIX), filed a lawsuit in effort to stop the proposed takeover of Ebix Inc by an affiliate of Goldman, Sachs & Co. for $20.00 per NASDAQ:EBIX share.
Investors who currently hold a significant amount of shares of Ebix Inc (NASDAQ:EBIX) have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
On May 1, 2013, Ebix, Inc. announced that it has entered into a merger agreement to be acquired by an affiliate of Goldman, Sachs & Co. in a transaction valued at approximately $820 million, including the assumption of any outstanding debt. Under the terms of the agreement, Ebix shareholders will receive $20.00 per share in cash.
However, the plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:EBIX stockholders by agreeing to sell the company too cheaply via an unfair process to Goldman Sachs.
Indeed, shares of Ebix Inc (NASDAQ:EBIX) traded as high as $24.62 per share as recently as September 2012 and at least one analyst has set the high target price at $24.00 per share In addition, Ebix’s financial performance improved recently. For instance, Ebix reported that its annual Total Revenue rose from $97.69 million in 2009 to $199.37 million in 2012 and that its respective Net Income increased from $38.82 million to $70.57 million.
In addition, the plaintiff claims that the process is also unfair. The plaintiff says that the defendants agreed to preclusive deal protection devices such as a $27 million termination fee provision. Furthermore, Robin Raina and the Rennes Foundation, which together own approximately 19% of the outstanding common shares, have already entered into separate voting agreements under which they have agreed, subject to certain exceptions, to vote their respective shares in favor of the proposed transaction
NASDAQ:EBIX shares closed on May 13, 2013 at 19.74 per share.
Those who are current investors in Ebix Inc (NASDAQ:EBIX), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego