WILMINGTON, Del.--(BUSINESS WIRE)--Rigrodsky & Long, P.A. announces that it is investigating potential claims against the board of directors of Magma Design Automation, Inc.(“Magma” or the “Company”) (Nasdaq: LAVA) concerning possible breaches of fiduciary duty and other violations of law related to the Company’s entry into an agreement to be acquired by Synopsys, Inc. (“Synopsys”) in a transaction with an approximate value of $507 million, net of cash and debt acquired.
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Under the proposed agreement, Synopsys will acquire all of the outstanding shares of Magma for $7.35 per share in cash.
The investigation concerns whether Magma’s board of directors adequately shopped the Company to obtain the best price possible for Magma’s shareholders before entering into the agreement with Synopsys. Indeed, according to Yahoo! Finance, at least one analyst has set a price target of $11.00 per share for Magma stock. Moreover, on December 1, 2011, Magma reported revenue of $38.3 million for its fiscal 2012 second quarter ended Oct. 30, 2011, up 13 percent from the $33.9 million reported in the year-ago second quarter. Magma chairman and CEO, Rajeev Madhavan, commented: “During the second quarter, Magma made great business and technical progress--adding a record number of new logos and generating positive cash flow for the 11th consecutive quarter[.]” (Emphasis added).
If you own the common stock of Magma and purchased your shares before November 30, 2011, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Seth D. Rigrodsky, Esquire or Noah R. Wortman, Case Development Director, of Rigrodsky & Long, P.A., 919 N. Market Street, Suite 980, Wilmington, Delaware 19801, by telephone at (888) 969-4242, or by e-mail to info@rigrodskylong.com.
Rigrodsky & Long, P.A., with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
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