Sees Significant Value-Creation Opportunities Stemming from Profitable Printing Technology Business
NEW YORK, October 11, 2021–(BUSINESS WIRE)–Acacia Research Corporation (Nasdaq: ACTG) (“Acacia” or the “Company”) today announced that it has acquired Printronix Holding Corp. (“Printronix”). Printronix is a leading manufacturer and distributor of industrial impact printers, which are also known as line matrix printers, and related consumables and services. The business services a diverse group of customers that operate across healthcare, food and beverage, manufacturing and logistics, and other sectors.
Acacia paid $33 million in cash for the business. The purchase price represents a multiple of approximately 3.6x the Adjusted EBITDA generated by Printronix in the fiscal year ended March 31, 2021.1
Printronix provides customized industrial print solutions for supply chain and manufacturing processes in harsh printing environments. Its line matrix printers are an established technology with committed end-markets and dedicated applications and functions. Many industries rely on this technology for various mission-critical applications, including printing on unusual sizes and shapes of paper and card-stock, multi-page carbon copy forms, and printing in harsh environments such as extreme heat, humidity, cold, and dust.
Clifford Press, Acacia’s President and Chief Executive Officer, commented:
“The acquisition of Printronix aligns with our strategic focus on acquiring high-potential businesses that can effectively leverage Acacia’s significant capital resources and operational expertise. Thanks to its leading position in a mature and inelastic market, we are confident that Printronix can deliver compelling risk-adjusted returns for our shareholders over the coming years. We expect that the company’s attractive margins and low capital expenditure requirements will produce positive cash flows as we help the business pursue growth via new products and acquisitions in ancillary segments.”
Clay Kiefaber, Acacia’s Operating Executive with responsibility for Printronix, added:
“After conducting significant diligence and thoroughly evaluating the business, we can confidently state that Printronix is led by an outstanding management group and supported by high-quality employees. We look forward to integrating the entire Printronix team into the Acacia platform and working together to pursue scale and market leadership.”
Werner T. Heid, Chief Executive Officer of Printronix, concluded:
“We are excited to join Acacia and believe it is the best partner to support our evolution. We look forward to working with Clifford, Clay and the rest of the Acacia team to expand our opportunities by targeting the right acquisitions and strategic partnerships in adjacent markets. This acquisition gives Printronix the opportunity to pragmatically expand our offerings as we continue to serve our loyal customers, provide customized solutions, and enhance our capabilities to meet their emerging industrial printing solution needs.”
About Acacia Research Corporation
Acacia Research (NASDAQ: ACTG) seeks to acquire value businesses and pursue opportunities for value creation. We leverage our (i) access to flexible capital that can be deployed unconditionally, (ii) expertise in corporate governance and operational efficiency, (iii) willingness to invest in out-of-favor industries and businesses that suffer from a complexity discount and untangle complex, multi-factor situations, and (iv) expertise and relationships in certain sectors, to complete strategic acquisitions of businesses, divisions, and/or assets with a focus on mature technology, healthcare, industrial and certain financial segments. We seek to identify opportunities where we believe we are advantaged buyers, we can avoid structured sale processes and we create the opportunity to purchase businesses, divisions and/or assets of companies at an attractive price due to our unique capabilities, relationships, or expertise, or we believe the target would be worth more to us than to other buyers. Information about Acacia Research Corporation and its subsidiaries is available at www.acaciaresearch.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This news release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Such forward-looking statements may turn out materially and adversely differently from those expressed in this news release as a result of various factors and uncertainties. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
1 Adjusted EBITDA is a non-GAAP financial measure that Acacia’s management believes is a useful measure of the financial performance of the ongoing Printronix business and expense structure. [Adjustments made by Printronix in calculating Adjusted EBITDA exclude one-time benefits from COVID-19 government support and loan forgiveness, one-time deal expenses, discontinued fees related to the prior ownership, and restructuring cost savings from prior ownership’s previously announced cost and location expense reductions.] Adjusted EBITDA is one of several metrics that Acacia’s management used to evaluate the purchase price of Printronix. Historical results of Printronix are not indicative of its future performance.
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