Acquisition of Multiband Corporation by privately held Goodman Networks Incorporated May Not Be in the Best Interests of Multiband Shareholders

SAN DIEGO and MINNETONKA, Minn., May 23, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Multiband Corporation (NASDAQ: MBND) by Goodman Networks Incorporated.  On May 22, 2013, the two companies announced the signing of a definitive merger agreement whereby Goodman Networks will acquire Multiband for $3.25 in cash for each Multiband share.

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Is the Acquisition Best for Multiband and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Multiband is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger or whether they are seeking to benefit themselves.

On May 15, 2013, Multiband released its first quarter 2013 financial results reflecting strong growth in the company's WildBlue internet service, Multi-Dwelling Unit ("MDU") segment, and Energy, Engineering & Construction ("EE&C") segment.  Specifically, Multiband reported first quarter WildBlue internet service revenue increased by 273%, or $2.5 million, to $3.4 million in the quarter. Further, Multiband reported that its MDU system operator revenues increased 21.8%.  Moreover, Multiband reported that its EE&C segment revenues increased by 19.9%, with, CEO James L. Mandel, commenting that, "we expect revenues in this segment to increase throughout the remainder of 2013 as we increase our sales activity and footprint." 

In addition, the $3.25 offer price is below the target price of multiple analysts, including a $4 target price set by an analyst at Craig-Hallum on August 15, 2012, and a target price of $3.50 set by an analyst at Northland Securities on November 15, 2012.  Moreover, Multiband has traded above the offer price as recently as March 27, 2012, reaching a high of $3.38.

Given these facts, the firm is examining the board of directors' decision to sell Multiband now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.   

Multiband shareholders have the option to file a class action lawsuit to secure the best possible price for shareholders and the disclosure of material information so shareholders can vote on the transaction in an informed manner.  Multiband shareholders interested in information about their rights and potential remedies can contact Darnell R. Donahue at (800) 350-6003, [email protected], 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 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.  For more information, please go to http://www.robbinsarroyo.com.

Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/multiband-corporation/

Attorney Advertising. Past results do not guarantee a similar outcome.  

Contact:
Darnell R. Donahue
Robbins Arroyo LLP
[email protected]
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com

SOURCE Robbins Arroyo LLP

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