|By PR Newswire||
|April 11, 2014 06:20 PM EDT||
SAN DIEGO and MIDDLEFIELD, Conn., April 11, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Zygo Corporation (NASDAQ: ZIGO) by AMETEK, Inc. (NYSE: AME). On April 11, 2014, the two companies announced the signing of a definitive merger agreement pursuant to which AMETEK will acquire all of the outstanding shares of common stock of Zygo at a purchase price of $19.25 per share in cash. The transaction, which was unanimously approved by the board of directors of Zygo, is expected to close towards the end of the second quarter of calendar 2014.
Is the Proposed Acquisition Best for Zygo and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Zygo is undertaking a fair process to obtain maximum value and adequately compensate Zygo shareholders.
On February 6, 2014, Zygo released its financial results for the second quarter 2014, reporting strong increases in revenue and net income. Specifically, Zygo reported a 39% increase in revenue and a 400% increase in net income over the same quarter 2013. Year to date net income was $6.0 million, or $0.31 per diluted share, compared to $2.6 million, or $0.14 per diluted share, in the prior year, representing a 130% and 121% increase, respectively. On a non-GAAP basis, net income in the first half of fiscal 2014 was $7.7 million, or $0.40 per diluted share, compared to $2.6 million, or $0.14 per diluted share, in the first half of fiscal 2013, representing a 196% and 185% increase, respectively.
Commenting on the second quarter results, Gary K. Willis, Zygo's interim Chief Executive Officer, commented, "Revenue in the second quarter improved considerably as we expected, and the bookings activity gained momentum throughout the quarter, driven by the reception to our new products, as well as strong sales of existing profiler models. We continue to see positive momentum in our bookings, which, combined with our end of quarter backlog, positions the Company for increased revenue and profits for the remainder of this fiscal year."
In light of these facts, Robbins Arroyo LLP is investigating Zygo'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.
Zygo shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. Zygo shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], 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 law 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.
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SOURCE Robbins Arroyo LLP