BOSTON (Thomson Financial) - L-1 Identity Solutions Inc. Monday said it has
entered into a definitive agreement to acquire the ID systems business of
Digimarc Corp. for about $250 million in cash and stock.
The company said it believes that the combination of L-1 and Digimarc's
secure ID business will bring "significant synergies" and benefits to the
identity management industry.
Under the terms of the agreement, Digimarc stockholders will receive about
50% of the purchase consideration in shares of L-1 stock and 50% in cash.
Digimarc stockholders will also receive shares in a new company bearing the
Digimarc name and holding Digimarc's digital watermarking business, the company
said.
L-1 expects pro forma 2008 revenue of about $670 million following the close
of the transaction in the second half of 2008.
Shares of L-1, a Stamford, Conn.-based provider of identity solutions and
services, closed Thursday at $12.66, while shares of Beaverton, Ore.-based
Digimarc closed at $8.40.
Casey Logan
cl/vj
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