SAN DIEGO and CHELMSFORD, Mass., June 9, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Hittite Microwave Corporation (NASDAQ: HITT) by Analog Devices, Inc. (NASDAQ: ADI). On June 9, 2014, the two companies announced the signing of a definitive merger agreement pursuant to which Hittite Microwave shareholders will receive $78.00 in cash for each share of common stock owned.
Is the Proposed Acquisition Best for Hittite Microwave and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Hittite Microwave is undertaking a fair process to obtain maximum value and adequately compensate Hittite Microwave shareholders.
As an initial matter, the $78.00 merger consideration represents a premium of just 28.7% based on Hittite Microwave's closing price on June 6, 2014. This premium is significantly below the average one-day premium of over 40% for comparable transactions in the past three years. Further, Hittite Microwave reported positive results for the first quarter 2014. On April 24, 2014, the company reported revenue of $70.6 million, an increase over both the same period 2013 and the previous quarter. Moreover, Hittite Microwave beat analysts' estimates for comparable adjusted net income in three of the last four quarters and estimates for comparable sales in every quarter during the past year.In light of these facts, Robbins Arroyo LLP is examining Hittite Microwave'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.