MobileIron Worth More Than Double Ivanti Offer, Holder Says

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An investor in MobileIron Inc. plans to oppose its proposed takeover by Ivanti Inc., arguing the software company could be worth more than double what is being offered by mid-2021.

White Hat Capital Partners said in a letter to the company’s board Monday that it owns a 1.2% stake and believes MobileIron could be worth from $11 to $15 a share if it is able to execute on its proposed strategy.

“MobileIron does not need additional capital and there is no urgent need that would require the company to sell at a discounted price,” wrote David Chanley and Mark Quinlan, managing partners at White Hat, in a letter to the company’s board, a copy of which was obtained earlier by Bloomberg.

Ivanti agreed to acquire MobileIron last month in a deal valued at about $872 million, or $7.05 a share. MobileIron’s board of directors unanimously approved the deal and recommended that shareholders vote in favor of the transaction. MobileIron’s shares climbed as much as 4.2% to $7.40 in New York Monday, giving the company a market value of about $877.6 million.

“Absent an improvement in the deal price, we plan to vote our shares against the proposed transaction at the upcoming special meeting of shareholders,” Chanley and Quinlan said.

Representatives for MobileIron and Ivanti weren’t immediately available for comment.

White Hat also said another suitor had made a bid above the $7.05 a share being offered by Ivanti. It said this raised questions about whether there had been a level playing field for competing proposals during the sale process. The investor believes an offer of $8 to $12 per share would be appropriate.

©2020 Bloomberg L.P.

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