Newman Ferrara LLP Announces Investigation of Ancestry.com Inc.
NEW YORK--(BUSINESS WIRE)-- Newman Ferrara LLP is investigating potential claims against the board of directors of Ancestry.com Inc. ("Ancestry.com") (NAS: ACOM) concerning the proposed acquisition of Ancestry.com by an investor group headed by European private equity firm Permira Funds ("Permira") and which includes members of Ancestry.com's management.
On October 22, 2012, Ancestry.com announced that it had entered into an agreement and plan of merger to be acquired by Permira in an all cash deal valued at approximately $1.6 billion. Under the terms of the agreement, Ancestry.com's shareholders will receive $32.00 per share of Ancestry.com stock owned. However, Ancestry.com common stock traded at above the $32.00 per share offer price as recently as August 20, 2012 when it traded at $32.48 per share. Ancestry.com common stock also traded as high as $33.80 per share as recently as August 3, 2012. Ancestry.com stock has increased in value by over 27% so far this year.
Ancestry.com's Chief Executive Officer Tim Sullivan, Chief Financial Officer Howard Hochhauser, and largest shareholder Spectrum Equity Investors V, L.P. will all retain equity ownership stakes in the company after the merger is completed. Ancestry.com's Board of Directors has unanimously approved the deal and Spectrum Equity Investors has agreed to vote its 30% stock ownership of Ancestry.com in favor of the deal. The proposed deal is expected to close early next year.
Newman Ferrara LLP's investigation concerns whether Ancestry.com's Board of Directors has breached its fiduciary duties by failing to act in the best interests of Ancestry.com's shareholders and failing to adequately shop Ancestry.com before entering into the proposed transaction.
Concerned investors are encouraged to contact Newman Ferrara attorney Roy Shimon at (212) 619-5400 or firstname.lastname@example.org to discuss this investigation, their rights, or potential remedies.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.
Newman Ferrara LLP
Attorney: Roy Shimon, 212-619-5400
KEYWORDS: United States North America Pennsylvania
The article Newman Ferrara LLP Announces Investigation of Ancestry.com Inc. originally appeared on Fool.com.