DALLAS, Dec. 8, 2011 /PRNewswire/ — Former United States Securities and Exchange Commission attorney Willie Briscoe and the securities litigation firm of Powers Taylor, LLP are investigating the sale of DemandTec, Inc. (“DemandTec” or “DMAN”) (NASDAQ: DMAN) to IBM for shareholders. Under the proposed acquisition agreement, DemandTec’s shareholders will receive only $13.20 in cash for each share of DMAN stock owned, which is well below the price that DemandTec shares traded as recently as late March 2011.

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If you are an affected investor, and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at patrick@powerstaylor.com, or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.

The definitive acquisition agreement involves an all cash transaction valued at approximately $440 million. The transaction is expected to close in the first quarter of 2012. The investigation centers on whether DemandTec’s shareholders are receiving adequate compensation for their shares in the buyout, whether the transaction undervalues DemandTec’s stock, and whether DemandTec’s board attempted to obtain the highest share price for all shareholders prior to agreeing to the deal.

According to former SEC attorney and shareholder rights attorney Willie Briscoe, “many aspects of this deal make us concerned that the transaction may not be fair for the shareholders.” More specifically, although the acquisition price represents a premium over the closing price of DemandTec’s stock the day before the acquisition announcement, DemandTec shares closed as high as $13.24, which is above the merger price, as recently as March 30, 2011. Further, DemandTec’s current CEO and COO have signed offer letters with IBM, and will reportedly be eligible for bonuses based on certain milestones being met. In addition, the transaction contains a $14 million termination fee. “Based on these and other factors, we are concerned that the transaction may significantly undervalue DemandTec/DMAN stock. Our lawsuit will seek to obtain the highest share price for all shareholders,” said Briscoe.

The Briscoe Law Firm, PLLC is a full service business litigation and shareholder rights advocacy firm with more than 20 years of experience in complex litigation and transactional matters.

Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.

SOURCE Powers Taylor LLP