Acacia is negotiating 5-6 large "structured agreements." Those are bundled transactions where infringing companies license all of Acacia's intellectual property for a three year period. Past deals with Microsoft, Oracle, Samsung, and Cisco Systems have averaged $40 million. Acacia's portfolio is far more extensive today than it was when those deals were signed, although it's much more diversified, too. The company's initial focus was wireless and computer technology. Recent expansions include medical devices, automotive, and industrial systems. Future structured transactions probably will include only a subset of Acacia's total arsenal, relevant to the target's area of interest.
Acacia is heading to court in April to sue Apple Computer. The company owns the Palm patents, which created the foundation for the smart phone industry. Apple recently won a $1.0 billion judgement against Samsung over the shape of the phone. Acacia could win that much if not more if it's victorious in its claims concerning how the phones actually work.
In 2-3 years earnings could reach $2.50-$3.00 a share. Faster gains are possible. Acacia's existing patents still have plenty of shelf life. And the company probably will reinvest some of its future cash flow in additional patent families. Above average growth could be sustained well into the decade.
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