L-1 locks up Digimarc purchase

L-1 Identity Solutions Inc. has purchased all outstanding shares of Digimarc Corp., completing its acquisition of Digimarc's identification systems business.

In March, L-1 Identity Solutions said it would purchase Digimarc's identification systems business for $250 million in a cash and stock deal. But in June, L-1 signed an amended definitive merger agreement, which reassessed the value of Digimarc's ID systems business at $310 million.

Digimarc, based in Beaverton, Ore., provides solutions for protecting, managing and commercializing all forms of digital media, including government-issued identification cards. Its products and services result in the annual production of more than 60 million personal ID documents, including ID solutions for more than 25 countries.

L-1 Identity Solutions, of Stamford, Conn., announced Aug. 4 that it had successfully completed the initial tender offering period for the purchase of Digimarc common stock. A subsequent offering period expired Aug. 13.

Immediately following exercise of the option, Digimarc became a wholly owned subsidiary of L-1 and its name was changed to L-1 Secure Credentialing Inc. According to the company's previous announcement, Digimarc common stock will cease to be traded on the Nasdaq Global Market.