Monday, June 30, 2008

Digimarc OKs $310M Cash Offer for ID Business

A week after revealing that it was considering an unsolicited, $300 million offer for its ID business, Digimarc Corp. announced Monday that it has accepted a better offer from Digimarc's original suitor, L-1 Identity Solutions Inc. Earlier this year, Digimarc agreed to sell its ID Systems business to L-1 for some $263 million in stock and cash. However, Digimarc reported on June 22 that it had received a $300 million cash offer from French firm Safran. Though Digimarc's original agreement with L-1 was still in effect and had cleared one regulatory hurdle, the company's board said it would consider Safran’s proposal because it was potentially superior. Whether sincere or not, the tactic has literally paid off—Digimarc reported Monday that its board has approved a $310 million, all-cash offer from L-1. The amended definitive merger agreement will take effect with a tender offer and will result in the merger of Digimarc's ID business with a wholly-owned L-1 subsidiary. The tender offer is expected to commence no later than July 7 and will remain open for 20 business days. Headquartered in Beaverton, Ore., Digimarc provides software and services used to produce identification documents.