July 21, 2016 (Shareholders Foundation) - An investor who currently holds shares of Marketo Inc (NASDAQ:MKTO), filed a lawsuit in effort to halt the proposed takeover of Marketo Inc by Vista Equity Partners for $55.00 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:MKTO stockholders by agreeing to sell Marketo Inc too cheaply via an unfair process to Vista Equity Partners

On May 31, 2016 Marketo Inc (NASDAQ:MKTO) announced that it has entered into an agreement to be acquired by private equity firm Vista Equity Partners. Under the terms of the proposed transaction Marketo Inc (NASDAQ:MKTO) shareholders will receive $35.25 in cash per share.

However, plaintiff claims that the proposed consideration NASDAQ:MKTO shareholders will receive is grossly inadequate and undervalues Marketo Inc. Indeed, at least one analyst has set the high target price for NASDAQ:MKTO shares at $55.00 per share. Marketo Inc reported that its annual Total Revenue rose from $58.41 million in 212 to $209.87 million in 2015. Shares of Marketo Inc (NASDAQ:MKTO) reached as high as $42.68 per share in early 2014. In addition, the plaintiff alleges that the process is also unfair to Marketo Inc stockholders