Press release from PR Newswire
Acquisition of Sourcefire, Inc. by Cisco Systems, Inc. May Not Be in the Best Interests of Sourcefire Shareholders
Tuesday, July 23, 2013
Acquisition of Sourcefire, Inc. by Cisco Systems, Inc. May Not Be in the Best Interests of Sourcefire Shareholders17:27 EDT Tuesday, July 23, 2013
SAN DIEGO and COLUMBIA, Md., July 23, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Sourcefire, Inc. (NASDAQ: FIRE) ("Sourcefire") by Cisco Systems, Inc. (NASDAQ: CSCO) ("Cisco"). On July 3, 2013, the two companies announced a definitive agreement under which Cisco will acquire Sourcefire. Under the terms of the agreement, Cisco will acquire all outstanding shares of Sourcefire for $76 per share in cash.
The Board of Directors' Actions May Prevent Sourcefire Shareholders from Receiving Maximum Value for Their Stock
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Sourcefire is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger. The $76 merger consideration represents a premium of only 28.64% based on Sourcefire's closing price on July 22, 2013. That premium is substantially below the average premium of 48.74% for comparable transactions in the past three years and fails to reflect the company's promising business prospects.
Is the Merger Best for Sourcefire Shareholders?
On April 30, 2013, Sourcefire released its financial results for the first quarter of 2013, reporting strong results for both U.S. commercial revenue, and international revenue. Specifically, Sourcefire reported that its U.S. commercial revenue reached $29.2 million, an increase of 40% over the same quarter in 2012. Further, the company's international revenue increased 32% over the first quarter of 2012, reaching $20.7 million.
In announcing these results, Sourcefire Chief Executive Officer, John Becker, commented, "Our threat-centric approach to cybersecurity that allows defenders to address the full attack continuum is in high demand, and we believe we are extremely well positioned to capitalize on the growth opportunity in front of us. Despite weakness in federal government spending, our total revenue increased 21% driven by ongoing strong performance from our International and U.S. Commercial businesses."
Given these facts, Robbins Arroyo is examining Sourcefire's board of directors' decision to be acquired by Cisco now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
Sourcefire shareholders have the option to file a class action lawsuit to secure the best possible price for shareholders and the disclosure of material information to shareholders. Sourcefire shareholders interested in information about their rights and potential remedies can contact Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, 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/sourcefire-inc/
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Contact:Darnell R. DonahueRobbins Arroyo LLPddonahue@robbinsarroyo.com(619) 525-3990 or Toll Free (800) 350-6003www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP