Ademi LLP is investigating Datto (NYSE:MSP) for possible breaches of fiduciary duty and other violations of law in its transaction with Kaseya.
Ademi LLP alleges Datto's financial outlook and prospects are excellent and yet Datto shareholders will receive only $35.50 per share in a transaction that values Datto at approximately $6.2 billion. The transaction agreement unreasonably limits competing bids for Datto by prohibiting solicitation of further bids, and imposing a significant penalty if Datto accepts a superior bid. Datto insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Datto's board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Datto.