Digimarc Corporation (Nasdaq:DMRC), an identification and management solutions company, operated two business segments: ID Solutions and Digital Watermarking. Digimarc engaged RA Capital to provide strategic alternatives to unlock the value embedded in the company’s two business units that management felt were being overlooked in the marketplace.
RA Capital worked closely with management to articulate a clear value thesis for the business units and approached several potential strategic partners to generate interest. Ultimately L-1 Identity Solutions acquired the ID Solutions unit in a transaction valued at $310 million. The value of this transaction alone was in excess of the entire market capitalization of the Company, which provided shareholders with a large premium and continued upside from ownership of the Digital Watermarking business.
The transaction was recognized by Wolters Kluwer Financial Services as a Top 10 Corporate Action representing the most challenging corporate events of 2008.
- Industry: Application Software
- Deal Type: M&A – Carve Out
- Location: Beaverton, OR