Blackboard Inc., an educational-software maker, was sued in Delaware Chancery Court by an investor contending the company’s stock is undervalued in a proposed $1.64 billion buyout by Providence Equity Partners Inc.
The company is being sold through “an unfair process and for an unfair price,” shareholder Astor BK Realty Trust contends in a complaint filed today in Wilmington, Delaware.
“Indeed, one analyst, Wedbush, believes that Blackboard is worth at least $50 to $65 per share as a takeover target,” Astor lawyers said in court papers.
The Providence, Rhode Island-based investment firm agreed July 1 to buy Blackboard, of Washington, for $45 a share in cash, a 21 percent premium at the time.
Astor is seeking class-action or group status for the lawsuit on behalf of common stockholders and an order to stop the buyout or award damages.
Michael Stanton, a spokesman for Blackboard, didn’t immediately return a call seeking comment on the suit.
Blackboard rose 2 cents to $44.20 at 12:48 p.m. in Nasdaq stock market trading.
The case is Astor BK Realty Trust v. Chasen, Delaware Chancery Court (Wilmington).