Business
Acacia Research Acquires Printronix, a Leading Printing Technology Business
Sees Significant Value-Creation Opportunities Stemming from Profitable Printing Technology Business NEW YORK--(BUSINESS WIRE)-- Acacia Research Corporation
About this update from Acacia Research Corporation
[{"type":"text","content":"\nSees Significant Value-Creation Opportunities Stemming from Profitable Printing Technology Business\n\n NEW YORK--(BUSINESS WIRE)--\nAcacia 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.\n\nAcacia 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\n\nPrintronix 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.\n\nClifford Press, Acacia’s President and Chief Executive Officer, commented:\n\n“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.”\n\nClay Kiefaber, Acacia’s Operating Executive with responsibility for Printronix, added:\n\n“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 te...