Robbins Arroyo LLP: Acquisition of Aruba Networks, Inc. (ARUN) by Hewlett-Packard Company (HPQ) May Not Be in Shareholders' Best Interests
SAN DIEGO and SUNNYVALE, Calif., March 2, 2015 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Aruba Networks, Inc. (NASDAQ: ARUN) by Hewlett-Packard Company (NYSE: HPQ). On March 2, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Hewlett-Packard will acquire Aruba. Under the terms of the agreement, Aruba shareholders will receive $24.67 for each share of Aruba common stock.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/aruba-networks-inc-march-2015
Is the Proposed Acquisition Best for Aruba Networks, Inc. and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Aruba is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
There were ten analysts with a target price above the offer price of $24.67 before news of the deal was reported. Among those, the $24.67 merger consideration was significantly below the target price of $28.00 set by an analyst at Cowen and Company on August 27, 2014, and $27.00 set by analysts at Northland Securities, Inc. and Dougherty & Company LLP on April 3and August 27, 2014, respectively. Moreover, Aruba traded as high as $26.78 on February 22, 2013.
On February 26, 2015, Aruba reported strong earnings results for its second quarter 2015. Revenues for the second quarter fiscal 2015 were $212.9 million, compared with $176.4 million for the comparable quarter in fiscal 2014, representing a 21 percent year-over-year growth. Additionally, Aruba beat analyst consensus estimates for both adjusted net income and adjusted EPS in three out of its last four quarters and beat analyst consensus estimates for sales in each of its last four quarters.
In commenting on these results, Aruba President and Chief Executive Officer Dominic Orr remarked, "We are pleased to report solid results for the second quarter, reflecting continued execution on our strategic plan. Our results were supported by continued growth in our key geographies, strong year-over-year performance in our Federal vertical, further success in penetrating the Global 2000, and increasing traction in our SME business. We believe we are well positioned to capitalize on the continued growth in WLAN, the potential opportunities from increased E-Rate funding later this year, and the continued 802.11ac refresh cycle." Aruba Chief Financial Officer Michael Galvin added, "We delivered a strong financial quarter on many fronts. Strong revenue growth and gross margin expansion coupled with prudent management of operating expenses led to a record quarter for non-GAAP operating margin."
In light of these facts, Robbins Arroyo LLP is examining Aruba's 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.
Aruba 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. Aruba shareholders interested in information about their rights and potential remedies can contact attorney 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 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.
Attorney Advertising. Past results do not guarantee a similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
[email protected]
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP
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