Business
Acacia Research Streamlines Capital Structure, Strengthens Financial Base, Creating a Corporate Acquisition Platform Backed by Starboard Value LP
CEO Clifford Press Announces Retirement With Successful Completion of this Transformation Starboard to Invest Over $245 Million in Additional Capital and
About this update from Acacia Research Corporation
[{"type":"text","content":"\nCEO Clifford Press Announces Retirement With Successful Completion of this Transformation\n\nStarboard to Invest Over $245 Million in Additional Capital and Convert All Ownership Interests to Common Shares; Starboard’s Gavin Molinelli to be Appointed Chair of Acacia’s Board \n\nAcacia to Conduct Rights Offering at $5.25 per share for All Shareholders and Starboard Commits to Buy at Least 15 Million Shares; Acacia to Have Expected Book Value of $5.37 and Adjusted Book Value of $5.63\n\n NEW YORK--(BUSINESS WIRE)--\nAcacia Research Corporation (Nasdaq: ACTG) (“Acacia” or the “Company”) and Starboard Value LP (“Starboard”), an investment adviser with a focused and fundamental approach to investing in publicly traded U.S. companies, today announced an agreement to streamline the Company’s capital structure, further strengthen its financial position, and position it as a unique Starboard-backed corporate acquisition platform. As a result of the agreement, which provides for Starboard converting its ownership interests to common shares, Acacia has enhanced its ability to be a strategic acquirer of operating companies and positioned all of the Company’s shareholders to be invested on the same terms as Starboard.\n\nAcacia also announced that Chief Executive Officer Clifford Press will retire from his CEO and Board position, having overseen Acacia’s transformation, first as a board member, then as CEO, for the last four years. MJ McNulty has been appointed as interim-Chief Executive Officer. Mr. McNulty has served as Chief Operating Officer and Head of M&A at Acacia since March 2022. The Board will conduct a search for a permanent successor.\n\nTransaction Highlights\n\nBolstering of Differentiated Corporate Acquisition Platform\n\n\nProvides additional capital and strengthens Starboard’s strategic relationship\n\n\nGavin Molinelli, Partner and Portfolio Manager at Starboard, will join Acacia’s Board of Directors (the “Board”) as Chair\n\n\nStreamlined Capital Structure\n\n\nStarboard will exercise its 5 million Series A Warrants at the $3.65 per share exercise price, which will result in an approximately 11.5% common equity ownership in Acacia and an approximately 27.5% voting interest, inclusive of existing Convertible Preferred.\n\n\nAcacia will commence a rights offering (the “Rights Offering”) in the first quarter of 2023, offeri...