The acquisition, which Acacia estimates is valued at $5 million in cash and 3.9 million shares of Acacia Research stock, would effectively put Acacia in control of 11 patent licensing companies currently owned by Global Patent Holdings.
According to Acacia CEO Paul Ryan, the acquisition would diversify the number of business sectors Acacia could exert patent licensing control over and would significantly increase the company's revenue potential.
Ryan also said that the new portfolios are "in totally different fields" from the company's Digital Media Transmission patent portfolio, which Acacia is currently trying to enforce against the online adult entertainment and cable and satellite industries.
The deal with Global Patent is expected to close within 45 days, Acacia said in a statement, and will also include a payout of an additional $2 million over a period of two years.
In a Thursday morning conference call, Ryan said that the acquisition, which includes 27 new patent portfolios, would accelerate the company's business strategy of buying up additional portfolios.
"We're very excited about the potential of this proposed transaction," Ryan said.
If the acquisition moves forward, Acacia would claim ownership of the 27 portfolios, which include 121 U.S. patents and foreign counterparts in the areas of broadcast equipment, credit card receipt processing, data file synchronization, peer-to-peer network communications, spreadsheet programs and interactive simulation systems, in addition to 10 other business sectors.
One of the companies Acacia stands to acquire in the deal is TechSearch, which claims to have the legal and business expertise to execute successful patent enforcement and commercializing programs.
At the conclusion of the conference call, a shareholder asked for an update on the litigation process in Northern California. Robert Berman, executive vice president and legal counsel for Acacia, responded by saying that Acacia has an application currently pending in the multi-district panel to have all outstanding patent infringement lawsuits consolidated into one case and transferred to either the Northern or Southern California districts.
Berman added that the panel could take up to 60 days to decide.
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