Isilon Systems, Inc. Investors Fight Takeover With Lawsuit
An investor in Isilon Systems, Inc. (NASDAQ:ISLN) filed a lawsuit in effort to block the takeover of Isilon Systems, Inc. by EMC Corp.
According to the complaint the plaintiff alleges that defendants breached their fiduciary duties owed to Isilon Systems, Inc. (NASDAQ:ISLN) investors in connection with the proposed takeover.
Seattle, Washington based Isilon Systems, Inc announced on Monday, November 15, 2010, announced the signing of an agreement with EMC Corp. under which EMC Corporation (NYSE: EMC) will acquire Isilon Systems, Inc. (Nasdaq: ISLN) for $33.85 per ISLN share in cash or an aggregate purchase price of approximately $2.25 billion, net of Isilon’s existing cash balance.
Shares of Isilon Systems, Inc. were up almost 30% in response to the takeover news. Isilon Systems, Inc. shares (ISLN) traded on Friday at roughly $26.50 per share and jumped to its current 52weekHigh of $33.80 per share on Monday.
But the Isilon Systems, Inc. has performed well in the past. Isilon Systems 12 month Total Revenue doubled from $61.21million in 2006 to $123.91million in 2009. For the first three quarters in 2010 Isilon Systems reported $39.25million, $45.09million, and $53.85million. Isilon Systems announced a combined Net Income for the first three quarters of $7.11million.