| Acacia Research Corporation | |
| Type: | Public |
| Traded As: | NASDAQ: |
| Foundation: | 1993; 31 years ago |
| Founder: | Bruce Stewart |
| Location: | New York City, US |
| Key People: | MJ McNulty, CEO Kirsten Hoover, Interim CFORobert Rasamny, Chief Administrative OfficerJason Soncini, General Counsel |
Acacia Research Corporation is a publicly traded American company based in New York City. Acacia is focused on acquiring public or private businesses across industries including the mature technology, energy and industrials/manufacturing sectors where it believes it can generate shareholder value.[1]
The company is led by Martin “MJ” D. McNulty, Jr., who has served as Acacia’s director and Chief Executive Officer since February 2024.[2] Acacia has a strategic relationship with Starboard Value, LP, the company's controlling shareholder.
Acquisition Approach
The company targets transactions where it can acquire operating businesses and strategic assets that it believes are undervalued.[3] Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, rather than a specific investment horizon.[4] The company’s management team, constituted in late 2022, has experience in research, transactions and execution, and operations and management.[5]
Acacia is focused on companies with market values of less than $2 billion and particularly on businesses valued at $1 billion or less, however the company may pursue acquisitions that are larger under the right circumstance.
Target companies range from founder-owned or privately-controlled businesses to entire public companies or carve-outs of specific segments.[6]
Recent Acquisitions
On November 12, 2023, Acacia announced that it had acquired a majority interest in Benchmark Energy II, LLC, an independent oil and gas company based in Austin, Texas engaged in the acquisition, production and development of oil and gas assets in mature resource plays in Texas and Oklahoma.[7] At the time of the acquisition announcement, Benchmark Energy’s existing assets consisted of over 13,000 net acres primarily located in Roberts and Hemphill Counties in Texas, and an interest in over 125 wells, the majority of which are operated. On February 20, 2024, Benchmark Energy acquired certain upstream assets and related facilities in Texas and Oklahoma from a private seller.[8] Following this acquisition, which closed on April 17, 2024, the business consists of over 150,000 net acres and over 500 operated wells producing ~6,500 Mboe/d in the Western Anadarko Basin throughout the Texas Panhandle and Western Oklahoma, expanding Acacia’s oil and gas investments.[9] As of April 2024, Acacia owns 73.5% of Benchmark Energy.
In the fourth quarter of 2023, Atlas Global Technologies LLC, a subsidiary of Acacia’s patent licensing business, Acacia Research Group LLC, entered into licensing and settlement agreements relating to its WiFi-6 patent portfolio, with aggregate payments under such agreements totaling more than $81 million. [10]
In October 2021, Acacia acquired Printronix, a leading manufacturer and distributor of industrial impact printers.[11]
Printronix’s line matrix printers are used for labeling and inventory management, invoicing, bill of lading (BOL), financial reporting and engineering diagrams, among other applications. The business sells printers globally throughout North America, EMEA and APAC, including China and India.
History
Acacia was incorporated in California in January 1993 by Bruce Stewart and was later reincorporated in Delaware in December 1999.[12] [13] Stewart founded the business with the intention of using investment capital to enable innovation. In 2000, Acacia, under the leadership of Paul Ryan and Chip Harris, refocused its corporate strategy to concentrate on technology backed by strong patents. Acacia’s operations have since expanded and are now split into three verticals: Intellectual Property Operations, which includes patent licensing, enforcement and technologies business; Energy Operations; and Industrial Operations.
As of June 30, 2024, Acacia’s book value was $596.7 million and there were 100.4 million shares of common stock outstanding, for a book value per share of $5.95.[14] In the second quarter of 2024, the company’s total revenues were $25.8 million, up 227% compared to $7.9 million in the same quarter last year. This was composed of $5.3 million generated by the company’s Intellectual Property business, $6.3 million generated by Printronix and $14.2 million generated by Benchmark Energy in the quarter.
The company’s principal executive office is located in New York, New York.
----