SAN DIEGO and MINNETONKA, Minn., May 23, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Multiband Corporation (NASDAQ: MBND) by Goodman Networks Incorporated. On May 22, 2013, the two companies announced the signing of a definitive merger agreement whereby Goodman Networks will acquire Multiband for $3.25 in cash for each Multiband share. (Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO) Is the Acquisition Best for Multiband and Its Shareholders? Robbins Arroyo LLP's investigation focuses on whether the board of directors at Multiband is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger or whether they are seeking to benefit themselves. On May 15, 2013, Multiband released its first quarter 2013 financial results reflecting strong growth in the company's WildBlue internet service, Multi-Dwelling Unit ("MDU") segment, and Energy, Engineering & Construction ("EE&C") segment. Specifically, Multiband reported first quarter WildBlue internet service revenue increased by 273%, or $2.5 million, to $3.4 million in the quarter. Further, Multiband reported that its MDU system operator revenues increased 21.8%. Moreover, Multiband reported that its EE&C segment revenues increased by 19.9%, with, CEO James L. Mandel, commenting that, "we expect revenues in this segment to increase throughout the remainder of 2013 as we increase our sales activity and footprint." In addition, the $3.25 offer price is below the target price of multiple analysts, including a $4 target price set by an analyst at Craig-Hallum on August 15, 2012, and a target price of $3.50 set by an analyst at Northland Securities on November 15, 2012. Moreover, Multiband has traded above the offer price as recently as March 27, 2012, reaching a high of $3.38. Given these facts, the firm is examining the board of directors' decision to sell Multiband now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
Shares of Multiband Corporation (Nasdaq:MBND) have taken a tremendous swing upward. The stock is trading at $3.46 as of 3:31 p.m. ET, 26.3% above Wednesday's closing price of $2.74. Volume is at 412,212, 2.9 times the daily average of 140,600.