Digimarc has entered into a definitive agreement to sell its ID Systems business to L-1 Identity Solutions, Inc. in a stock and cash transaction valued at approximately $250 million based on the current market price of L-1 company stock. Under the terms of the definitive agreement, Digimarc stockholders will receive 50 percent of the purchase consideration in shares of L-1 stock and 50 percent in cash, subject to variations in the price of L-1 stock. As part of the transaction, L-1 has agreed to purchase $5 million of the common stock of the new digital watermarking company at fair market value. The transaction is expected to close in the second half of 2008. Digimarc Corporation is based in Beaverton, Oregon and L-1 Identity Solutions is headquartered in Stamford, CT.
According to Bruce Davis, Digimarc Chairman and CEO, “The addition of Digimarc’s ID business to L-1’s secure identity management portfolio will help our customers and theirs to rapidly move toward compliance with new federal regulations such as the REAL ID Act.”