On 5/27/15, MERU announced that they had entered into an agreement with Fortinet, Inc. (FTNT) for a sale of the company. The deal was structured under section 251(h) of the Deleware General Corporate Law. The 251(h) statute was enacted in late 2013, and summarized as simply as possible, fast tracks the occurrence of a merger without a shareholder vote. A brief review of the merger agreement shows that MERU does maintain the ability to terminate the agreement, but it will cost $2.2 million to back out. My opinion of this announcement is that MERU has finally decided to tell the market that they are in play! I expect that new parties will submit offers in the near future, and that the price of the stock will continue to increase.
Thank You
Frank Vigilante
