Investigation Overview
An investigation on behalf of investors, who currently hold shares of K2M Group Holdings, Inc. (NASDAQ: KTWO), was announced concerning whether the takeover of K2M Group Holdings, Inc. by Stryker Corporation is unfair to NASDAQ: KTWO stockholders.
The investigation by a law firm concerns whether certain officers and directors of K2M Group Holdings, Inc. (NASDAQ: KTWO breached their fiduciary duties owed to K2M Group Holdings, Inc. (NASDAQ: KTWO investors in connection with the proposed acquisition.
On August 30, 2018, K2M Group Holdings, Inc.(Nasdaq: KTWO) (the Company or K2M) announced a merger agreement with Stryker Corporation (Stryker, NYSE: SYK) pursuant to which Stryker has agreed to acquire all of the issued and outstanding shares of common stock of K2M in an all cash transaction for $27.50 per share, or a total equity value of approximately $1.4 billion.
However, given that at least one analyst has set the high target price for NASDAQ:KTWO shares at $29.00 per share, the investigation concerns whether the offer is unfair to K2M Group Holdings, Inc. (NASDAQ: KTWO stockholders. More specifically, the investigation concerns whether the K2M Group Holdings, Inc. (NASDAQ: KTWO 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.
K2M Group Holdings, Inc. reported that its annual Total Revenue rose from $236.63 million in 2016 to $258.031 million in 2017.
Shares of K2M Group Holdings, Inc. (NASDAQ: KTWO) closed on September 5, 2018, at $27.30 per share.