Robbins Arroyo LLP: Acquisition of Cyan, Inc. (CYNI) by Ciena Corporation (CIEN) May Not Be in Shareholders' Best Interests

SAN DIEGO and PETALUMA, Calif., May 4, 2015 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Cyan, Inc. CYNI by Ciena Corporation CIEN.  On May 4, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Ciena will acquire Cyan.  Under the terms of the agreement, Cyan shareholders will receive a combination of stock and cash valued at $4.75 for each share of Cyan common stock.

View this information on the law firm's Shareholder Rights Blog: http://www.robbinsarroyo.com/shareholders-rights-blog/cyan-inc

Is the Proposed Acquisition Best for Cyan and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Cyan is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.

As an initial matter, the $4.75 merger consideration represents a premium of only 11.8% based on Cyan's closing price on April 2, 2015.  This premium is significantly below the average one month premium of nearly 50.6% for comparable transactions within the past year.

Also on May 4, 2015, Cyan reported strong earnings results for its first quarter 2015.  Revenue for the first quarter fiscal 2015 grew 89% to $36.0 million from $19.0 million for the comparable quarter in fiscal 2014.  Furthermore, Cyan beat consensus analyst estimates for sales in three out of the last four quarters and consensus analyst estimates for EPS Adjusted and Net Income Adjusted in the last four quarters.

In the last three years, Cyan traded as high as $15.05 on May 14, 2013.  Most recently, Cyan traded above the offer price - at $5.29 - on January 6, 2014.

In light of these facts, Robbins Arroyo LLP is examining Cyan's board of directors' decision to sell the company now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.

Cyan 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.  Cyan 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.  

Attorney Advertising. Past results do not guarantee a similar outcome.  

Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com

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SOURCE Robbins Arroyo LLP