Bidding war emerges for Digimarc’s credentialing biz
The Safran Group has made a bid for Digimarc’s credentialing unit, according to Jeremy Grant, senior vice president and identity solutions analyst at the Stanford Group Company. The France-based company made a $300 million all-cash offer, a $37 million premium to the current $263 million of the cash/stock deal from L-1 Identity Solutions.
Digimarc says the deal with L-1 is still moving forward. Grant, however, says L-1 will most likely have to up its offer to around $285 million. There is a $10.5 million termination fee if the deal goes south.
“Our take – reading between the lines – is that Digimarc is planning to flirt with Safran, but hopes in the end for a deal to move forward with L-1 at a richer valuation,” Grant says. “Barring an even higher offer, we think this would be the best scenario for shareholders.”
Last week the Federal Trade Commission signed of on the sale of Digimarc’s driver license unit to L-1 Identity Solutions. This erases concerns that antitrust issues would hold up the deal. ![[end]](/resources/bullet/secureidnews-4.gif)
