Since the news of the proposed acquisition of
) hit the market, a number of law firms have initiated
investigations for any breach of fiduciary duty and violation of
state rules and regulations. The primary target has been the board
of directors at MICROS.
The law firms, on behalf of MICROS shareholders, are
investigating whether the MICROS board has sufficiently discharged
its duties related to the sale and verifying Oracle's valuation of
$68 per share ($5.3 billion) for MICROS.
MICROS' share price has been on an upswing after rumors about
the proposed deal spread on Jun 17. Following the news, MICROS
surged 14.9% ($8.62) to $66.33. Shares of MICROS closed $67.90 on
Tuesday, a tad below the proposed acquisition price of $68.00.
MICROS manufactures and sells point-of-sale (POS) hardware,
software and services to restaurant, hotel, hospitality, specialty
retail markets and other similar markets. Expansion of the
company's SaaS capabilities and an increase in licensed software
sales remain the growth catalysts, going forward. Moreover, recent
collaborations with companies like
), Dell and
) are expected to boost MICROS' hardware business.
It is worth noting that MICROS reported better-than-expected
third-quarter fiscal 2014 results buoyed by higher adoption of its
systems and new customer additions. The company also provided an
encouraging fiscal 2014 guidance.
MICROS' diverse offerings and expanding client base has prompted
Oracle to acquire the company. Adding MICROS to its portfolio will
extend its offerings in the retail and hospitality industries and
strengthen its position in these markets.
Nonetheless, MICROS faces competition from the likes of Square,
Revel, Groupon Inc and NCR Corp., which provide mobile and
tablet-based offerings for the hospitality sector that cannibalize
MICROS' legacy POS workstations. Impending investigations are an
additional overhang on the deal.
Currently, MICROS has a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
INTEL CORP (INTC): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis
ORACLE CORP (ORCL): Free Stock Analysis Report
MICROS SYS (MCRS): Free Stock Analysis Report
To read this article on Zacks.com click here.