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If you purchased shares of eResearch Technology, Inc (NASDAQ:ERT) prior to April 10, 2012 and currently hold any of those NASDAQ:ERT shares, you have certain options and you should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Investigation Overview
April 10, 2012 (Shareholders Foundation) -- The announcement that eResearch Technology, Inc agreed to be acquired by Genstar Capital LLC for $8.00 per share prompted an investigation for investors in eResearch Technology, Inc (NASDAQ:ERT) shares concerning whether the offer to acquire eResearch Technology, Inc and the buyout process are unfair to investors in NASDAQ:ERT shares.
The investigations by law firms concern whether certain officers and directors of eResearch Technology, Inc breached their fiduciary duties owed to NASDAQ:ERT investors in connection with the proposed acquisition.
On Tuesday, April 10, 2012, eResearchTechnology, Inc. (ERT), (Nasdaq: ERT) announced that it has entered into an agreement to be acquired by affiliates of Genstar Capital LLC for $8.00 per share in cash in a transaction valued at approximately $400 million. eResearchTechnology, Inc said the $8.00 per share purchase price represents a premium of approximately 38% over ERT's average closing share price for the 90 trading days ending on April 9, 2012 and 42% over the 52-week average.
However, NASDAQ:ERT traded as recently as Tuesday, April 3, 2012, as high as $8.15 per share, thus well above the current offer. In addition at least one analyst has set the high target price for NASDAQ:ERT shares at $11.00 per share, thus significantly above the curren offer of $8.00 per share.
Furthermore, eResearchTechnologys performance increased in recent years. In fact, eResearch Technology, Inc reported that its annual revenue increased from $93.82million in 2009 to $184.92million in 2011 and its Net Income rose from $10.69million to $13.73million, respectively.
Therefore the investigation for NASDAQ:ERT investors concerns whether the proposed transaction is unfair to eResearch Technology stockholders.
Specifically, the investigation focuses on whether the eResearch Technology Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
