Blackboard Inc. Takeover under Investor Investigation

July 6, 2011 - PRLog -- Following the announcement by Blackboard Inc. that it agreed to be taken over at $45 cash per BBBB share by an investor group led by affiliates of Providence Equity Partners an investigation on behalf of investors of Blackboard Inc.  concerning whether the $45 offer and the sale process are unfair to investors in Blackboard stock and whether certain of its officers and directors or others breached their fiduciary duties in connection with the proposed acquisition.

If you are a current investor in Blackboard Inc.  and purchased your, NASDAQ- BBBB shares prior to the announcement, and/or if you have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm concerns whether the Blackboard Inc, certain of its officers and directors, and/or others breached their fiduciary duties owed Blackboard  investors in connection with the proposed takeover.

On Friday, July 1, 2011, Blackboard Inc.  announced it has entered into a definitive agreement under which Blackboard will be acquired by an investor group led by affiliates of Providence Equity Partners in an all-cash transaction valued at approximately $1.64 billion, plus the assumption of approximately $130 million in net debt. Blackboard Inc said the offer represents a 21 percent premium over the closing price of $37.16 per share on April 18, 2011, the day before Blackboard publicly announced that it was evaluating strategic alternatives.

However, following the takeover news shares of Blackboard Inc (BBBB) rose from as high as $43.84 the day before the announcement to $44.17 on Friday, leaving stockholders in NASDAQ- BBBB shares with only a meager premium.

In fact, Blackboard shares jumped from $37.26 to over $50 already on April 19, 2011 after Blackboard  announced on April 19, 2011, that it is evaluating the offers to acquire the company as well as strategic alternatives. Furthermore, Blackboard stock traded as high as $48.80 per share as recently as April 21, 2011and at least one industry analyst has set a  target price of $55.00 for Blackboard stock.

Given recent trading prices and the meager to no premium the investigation concerns whether the sale process and the offered price are unfair to the shareholders of Blackboard Inc.  and whether the Blackboard Board of Directors breached their fiduciary duties owed to Blackboard Inc.  shareholder by failing to adequately shop the Company before entering into the transaction.

The investigation concerns also whether the investor group led by affiliates of Providence Equity Partners  would underpay for NASDAQ- BBBB shares, thus unlawfully harming Blackboard stockholders.

In fact, besides recent stock trading prices above the current offer Blackboard Inc. has performed well for its investors in the past.

Blackboard’s 12months Total Revenue increased from $239.45million in 2007 to $447.32million in 2010. Its Net Income increased to $16.64million in 2010. Its first quarter Revenue rose from $101.07million for the first quarter in 2010 to $118.76million for the first quarter in 2011.

Thus potential securities class action lawsuit would seek to maximize the amount of money and information NASDAQ-BBBB shareholders would receive in a buyout, so the law firm.

Those who are current investors in Blackboard Inc.  and purchased your NASDAQ BBBB shares prior to the announcement, and/or those who have any information relating the investigation, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.