We are investigating the fairness of the $18.15 per share in cash at which Qualtrics International Inc. (Nasdaq: XM) (Qualtrics) will be sold to an investor consortium led by Silver Lake Management Company VI, L.L.C. (Silver Lake) and the Canada Pension Investment Board (CPIB).
If you remain a Qualtrics shareholder and question the fairness of the price, you may contact our firm to discuss your options at no charge by completing and submitting the form below.
Why is there an investigation?
On March 13, 2023, Qualtrics announced that it is being sold to an investor consortium led by Silver Lake and CPIB for $18.15 per share in cash. The sale has been approved by the Qualtrics board of directors (Board).
“We are investigating whether the Qualtrics Board acted in the best interests of Qualtrics shareholders in approving the sale,” explained Joshua Fruchter, one of the law firm’s name partners. “This includes whether the price agreed upon is fair to Qualtrics shareholders, and whether all material information regarding the transaction has been fully disclosed.”
Notably, the $18.15 per share deal price is well below the 52-week high for Qualtrics of $30.95 per share on March 17, 2022, and the $41.85 per share at which Qualtrics opened on January 28, 2021, after its IPO, which indicates that Silver Lake and CPIB may be taking advantage of the temporary market downturn to acquire Qualtrics at a bargain price.
Further, according to an analysis of Wall Street price targets for Qualtrics in the last 90 days published on Seeking Alpha, there is a high price target for Qualtrics of $28.00 per share, and an average target price of $18.39, which indicates that several Wall Street analysts think the deal price is too low.
Finally, there is a significant amount of negative investor reaction to the deal. For example, in a comment appearing on Seeking Alpha on March 6, 2023, after news of a deal first surfaced, an investor with the username A Swan wrote, “Lots of upside from where they are today. Selling for a couple of % over current market is a disservice to shareholders.” Similarly, another investor on Seeking Alpha with the username Diesel wrote on March 6, 2022, “[t]hey IPO’ed just a couple years ago for $42 per share. Now going private for $18 per share. Another one that fleeced its investors.”