L-1 takes first steps to acquire Digimarc
- By David Hubler
- Aug 04, 2008
L-1 Identity Solutions Inc. has taken the first steps toward expanding its portfolio of identity solutions through the planned acquisition of Digimarc Corp.
The Stamford, Conn., company announced today that it had successfully completed the initial tender offering period for the purchase of Digimarc common stock.
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.
In March 2008, 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.
The Digimarc Board of Directors unanimously supported the new offer from L-1 and recommended that its stockholders tender into the offer.
The initial offering period expired Friday, Aug. 1. At the time there were approximately 19.7 million shares of Digimarc outstanding, or almost 80 percent of its common stock. Digimarc cancelled its planned Aug. 1 earnings conference call due to the tender offer.
The subsequent offering period will expire Friday, Aug. 8, unless otherwise extended. L-1, with the participation of its wholly owned subsidiary, Dolomite Acquisition Co., will then acquire all remaining outstanding shares of Digimarc common stock through a merger.
As a result, Digimarc will become a wholly owned subsidiary of L-1 and its common stock will cease to be traded on the Nasdaq Global Market.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.