Securities Lawsuit Investigation | Renaissance Learning, Inc. (NASDAQ: RLRN) | For: shareholder litigation in connection with alleged unfair takeover offer
On August 16, 2011, Renaissance Learning, Inc. (or the “Company”) agreed to be acquired by private-equity firm Permira Funds, a UK-based firm. Under the terms of the transaction, the co-founders of the Company, will receive $15 per share. The remaining shareholders will receive $16.60 per share. The co-founders of the Company, control 60 percent of Renaissance Learning shares.
Renaissance Learning, Inc. (NASDAQ: RLRN) had previously received a buyout offer from Plato Learning Inc.on September 27, 2011. Under these terms the co-founders would have received $15.10 per share and the other shareholders $18 per share. The Company’s co-founders and the Board rejected the Plato Learning offer.
Investigation Into Alleged Unfair Takeover Offer
The investigation concerns whether the Renaissance Learning Board of Directors breached their fiduciary duties to Renaissance Learning stockholders by failing to adequately shop the Company before entering into this transaction and whether Permira Funds is underpaying for Renaissance Learning shares, thus unlawfully harming Renaissance Learning stockholders
Renaissance Learning Inc. (RLI) is an educational software and hardware company, publicly traded on the NASDAQ exchange under the ticker symbol RLRN. It is headquartered in Wisconsin Rapids, Wisconsin, USA, with offices in Canada, and the United Kingdom.
The company creates educational software (see list) and hardware for K-12 schools (primary and secondary), and over 67,000 schools in the USA use their software. The company’s software includes applications for reading, math, language acquisition, and early literacy. Most of the company’s software products are daily task management and/or progress-monitoring tools for various academic skills (e.g., math practice). With the 2005 acquisition of AlphaSmart and the release of the 2Know! Classroom Response System, the company now provides, in addition to its software products, hardware to assist with writing, scoring tests, and other educational purposes.
On August 16, 2011, Renaissance Learning, Inc. (or the “Company”) agreed to be acquired by private-equity firm Permira Funds, a UK-based firm.
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