BOSTON, Dec. 23, 2013 /PRNewswire/ -- Block & Leviton
LLP (www.blockesq.com), a Boston-based law firm representing investors
nationwide, has commenced an investigation into possible breaches
of fiduciary duty by the Board of Directors of Dynamics Research
Corporation ("Dynamics Research" or the "Company") (NASDAQ:
DRCO) concerning the proposed acquisition of the Company by
Engility Holdings, Inc. ("Engility") (NYSE:
EGL), in a transaction valued at approximately $130 million. The
investigation is also seeking to determine whether Engility aided
and abetted the Company's breach of fiduciary
duties. Under the terms of the transaction,
Engility will acquire each Dynamics Research share for $11.50, a seemingly insufficient premium that may
fail to recognize the tremendous growth of the
Company.
Indeed, Dynamics Research's share price has been spiking over
the last year. Its value has increased nearly
50% in just the past 6 months alone and the growth shows no sign of
stopping. The Company has a proven track record
of supporting the government's highest priority programs in the
science, engineering, IT, and management consulting markets.
Dynamics Research's broad portfolio of over 300
active contracts includes prime positions on key Department of
Defense and federal civilian agency contract vehicles and will
diversify Engility's customer base tremendously.
Through its high level, long-standing contracts, Dynamics Research
is the prime contractor on approximately 80% of the work that its
more than 1,100 employees perform, and has estimated 2013 revenue
of $274-277 million and adjusted
EBITDA of $24.3-24.7
million. Thus, the so-called "premium"
appears to significantly undervalue the Company
Block & Leviton's investigation seeks to determine, among
other things, whether Dynamics Research's Directors breached their
fiduciary duties by failing to maximize shareholder value in the
proposed acquisition by Engility and the fairness by which the
Dynamics Research Directors considered and approved the
transaction.
If you are a Dynamics Research shareholder and have questions
about your legal rights, or if you have information relevant to
this investigation, please contact attorney Steven P. Harte, at
(617) 398-5600 or email him at Steven@blockesq.com.
Block & Leviton is a Boston-based law firm representing investors
nationwide for violations of securities laws.
The firm's lawyers have collectively been prosecuting securities
cases on behalf of investors for over 50 years.
This notice may constitute attorney advertising.
Contact:
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
steven@blockesq.com
(617) 398-5600
SOURCE Block & Leviton LLP