L-1 Identity Solutions acquires Digimarc's ID systems business

By Lisa Kerner

Charlotte, N.C., Aug. 14 - L-1 Identity Solutions, Inc. completed its acquisition of Digimarc Corp.'s ID systems business, it was announced on Thursday.

The extended subsequent offering period for Digimarc's common stock ended on Aug. 13.

L-1 said it purchased, through the initial and subsequent offering periods, a total of 22,093,169 shares of Digimarc common stock, or 88.37% of Digimarc's outstanding shares.

According to L-1, it exercised the option to purchase newly issued shares of Digimarc common stock directly from Digimarc in order to acquire at least 90% of the outstanding shares and effect a short-form merger under Delaware law.

Shares of Digimarc common stock not tendered in the offer were cancelled and converted into the right to receive the same $12.25 in cash per share, without interest and less any required withholding taxes, that was paid in the tender offer.

Digimarc previously transferred its digital watermarking business to DMRC Corp., which changed its name to Digimarc following the merger, an L-1 news release said.

In July, L-1 and Digimarc amended their previously announced merger agreement to give Digimarc shareholders $12.25 per share.

L-1 agreed in June to acquire Digimarc's ID systems business for $310 million in cash, up from L-1's original stock and cash offer of $250 million.

Digimarc is a secure identity solutions provider based in Beaverton, Ore.

L-1's identity solutions are designed to protect personal privacy. The company is based in Stamford, Conn.

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