Wednesday, October 3, 2012

Acacia Research ( Nasdaq - ACTG ) -- Major Patent Acquisition

Acacia Research (ACTG $27.00) obtained the rights to a valuable patent collection from one of the world's largest medical device manufacturers.  The acquisition amplifies the company's burgeoning medical operation, which was bolstered by a similar deal in the June quarter.  The latest arrangement is a partnership where Acacia Research will divide any winnings generated with the manufacturer.  Many large companies are seeking ways to make money on their intellectual property.  Joining forces with Acacia Research is becoming a popular way of accomplishing that.

A string of settlements likely provided strong Q3 financial results.  Acacia Research doesn't reveal the size of individual payments.  But based on previous deals and the size of the infringing companies a potent performance looks realistic.  Our full year estimates are unchanged.  December period results could accelerate if Acacia Research can unlock the potential of its recent acquisitions without delay.  The company also is working on several "structured agreements."  Those are unusually large deals that typically involve Acacia Research's entire portfolio.  Past agreements have been made with Microsoft, Samsung, Oracle, and Cisco. 

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