NEW YORK: A law firm is investigating whether Cision breached its fiduciary duty to investors by agreeing to be acquired by an affiliate of Platinum Equity for $2.74 billion.
Levi & Korsinsky notified Cision investors on Wednesday of its probe to ascertain if Cision failed to adequately shop the company before agreeing to sell to Platinum Equity. It is also investigating whether the premium the private equity firm plans to pay is too low.
Cision has agreed to sell the company to Platinum for $10 per share, which is a 34% premium over its stock over a 60-day period ending on October 21. The acquisition is expected to close in Q1 2020 if Cision shareholders approve of the measure.
Platinum Equity and Cision declined to comment. A Levi & Korsinsky representative wasn’t available for comment.
Levi & Korsinsky has offices in New York, Connecticut, California and Washington, DC. It specializes in prosecuting securities litigation involving financial fraud and representing investors nationwide in securities lawsuits.
Cision has used more than $2.25 billion to acquire 12 companies, including Trendkite, Gorkana and PRNewswire, since the combination of Cision and Vocus in 2014. Cision went public in 2017 through a reverse merger.
