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NEWSWIRE
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L-1 to acquire Digimarc's ID systems biz for $250m. |
03.27.2008
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STAMFORD, Conn.--Biometrics giant L-1 Identity Solutions announced March 24, that it will acquire the ID Systems business of Digimarc in a stock and cash transaction valued at approximately $250 million.
"Digimarc's expertise in centralized production of credentials, together with L-1's biometric recognition and document authentication capabilities, will enable us to provide a secure end-to-end solution for issuance of government credentials like driver's licenses," said Robert V. LaPenta, chairman and CEO of L-1 Identity Solutions in a prepared statement.
Digimarc stockholders will receive approximately 50 percent of the purchase consideration in shares of L-1 stock and 50 percent in cash. Digimarc stockholders will also receive shares in a new company, which will bear the Digimarc name.
Under the definitive agreement, the maximum number of L-1 shares that can be issued is 11.3 million. L-1 has agreed to invest $5 million in new Digimarc.
Following the closing of the transaction, L-1 is expected to have revenues of approximately $670 million, adjusted EBITDA of $110 million including operational efficiencies, unlevered free cash flow of $75 million and a backlog of approximately $1 billion.
Bruce Davis, CEO and Chairman of the Board of Digimarc in a prepared statement said: "Our combined knowledge in international markets will enable us to reach more potential customers with an expanded portfolio of innovative credentialing solutions, including national ID cards. The combination of the two will also help speed adoption globally by introducing a more streamlined and cost effective process into the international marketplace."
The deal is subject to regulatory and Digimarc shareholder approvals. It is expected to close in the second half of 2008. The acquisition has been approved by the respective Board of Directors of each company.
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