SAN DIEGO and EDEN PRAIRIE, Minn., Sept. 4, 2014 (GLOBE NEWSWIRE) -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of XRS Corporation by Omnitracs, LLC. On September 2, 2014, the companies announced the signing of a definitive merger agreement pursuant to which Omnitracs will acquire XRS Corp. Under the terms of the agreement, holders of XRS Corp. will receive $5.60 per share for each share of XRS Corp. owned.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/xrs-corporation
Is the Proposed Acquisition Best for XRS Corp. and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at XRS Corp. is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, on August 7, 2014, XRS Corp. released its third quarter 2014 earnings, reporting strong revenue increases. Notably, for the three months ended June 30, 2014, mobile software revenue increased 19% compared to the same period in fiscal year 2013. Additionally, working capital increased from $13 million as of September 30, 2013 to $16.1 million as of June 30, 2014. In announcing the third quarter results, Jay Coughlan, Chairman and Chief Executive Officer noted, "It's been an impressive quarter for customer growth and we are pleased that over 190 fleets chose our XRS platform as their fleet management and compliance solution…. Continued investment in our solution positions us well to capitalize on the growing compliance market."
In light of these facts, Robbins Arroyo LLP is examining XRS Corp.'s board of directors' decision to merge the company now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
XRS Corp. shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. XRS Corp. shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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