According to a press release an investigation on behalf of Aladdin Knowledge Systems, Ltd. (NASDAQ: ALDN) investor over potential breaches of fiduciary duty in connection with the proposed acquisition of Aladdin Knowledge Systems, Ltd (NASDAQ: ALDN) has been announced.

Information security company Aladdin Knowledge Systems Ltd. said it has entered into a definitive merger agreement to be acquired by an investor group lead by Vector Capital, a private equity firm, for a price of about $160 million. According to Israel-based Aladdin, this represents a premium of nearly 20% over its closing share price on January 9, and a premium of about 64% over its closing share price on January 5, 2009. Under the terms of the merger agreement, Aladdin shareholders would receive $11.50 per share in cash for a total sale price of approximately $160 million. Aladdin stock had traded at more than $12 per share within the past three months and as high as $23.00 over the past year.

The deal is not subject to any financing condition. The deal is expects to close in 2-3 months.