This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Acquisition Of The Active Network, Inc. By Vista Equity Partners May Not Be In The Best Interests Of The Active Network Shareholders

Stocks in this article: ACTV

SAN DIEGO and KENT, Wash., Sept. 30, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of The Active Network, Inc. (NYSE: ACTV) by Vista Equity Partners, a private equity firm.  On September 30, 2013, ACTIVE announced the signing of a definitive merger agreement under which Vista Equity will commence a tender offer to acquire all outstanding shares of ACTIVE's common stock for $14.50 per share in cash.  The ACTIVE board of directors has unanimously approved the merger agreement. The transaction is expected to close in the fourth quarter of 2013.  


Is the Merger Best for ACTIVE and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at ACTIVE is undertaking a fair process to obtain maximum value and adequately compensate ACTIVE's shareholders in the merger.  As an initial matter, the $14.50 consideration represents a premium of only 27.19% based on the ACTIVE's closing price on September 27, 2013.  That premium is significantly below the median one-day premium of over 38% for comparable transactions in the last three years. 

Moreover, ACTIVE is currently experiencing success and growth in its business prospects.  On August 1, 2013, ACTIVE issued a press release announcing the company's financial results for its second quarter of 2013, reporting record revenue and strong Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA").  Specifically, ACTIVE reported record net revenue of $132.4 million for the quarter, an increase of 9% compared to the same quarter in 2012.  Further, ACTIVE reported Adjusted EBITDA of $23.7 million, an increase of 18%, compared to the same quarter in 2012.  In announcing these results, Jon Belmonte, ACTIVE's Interim CEO, stated, "I am pleased with our strong second quarter results - with revenues at the top end of our outlook range and Adjusted EBITDA exceeding the high end of our guidanceā€¦ During the quarter, we commenced on a number of prioritization efforts designed to strengthen our financial performance and extend our market leadership position."

Given these facts, Robbins Arroyo is examining ACTIVE's board of directors' decision to sell the company to Vista Equity Partners now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects, and whether they are seeking to benefit themselves.  

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs