Acacia Research announces acquisition of Deflecto

Acacia Research Corporation (NASDAQ: ACTG) said on Monday that it had acquired Deflecto in a deal valued at $103.7 million.

Under Acacia’s ownership, Deflecto will continue to be headed by its Chief Executive Officer, Ross Pliska, and the current management team.

In the 12-month period ended August 31st, Deflecto generated revenue of about $131 million.

Based on current market conditions, Acacia said it expected Deflecto to generate $128-$136 million in revenue during this year.

”We are pleased to add Deflecto to Acacia’s growing portfolio of strategic assets. This acquisition is consistent with the types of opportunities we look for. Deflecto fits in our target size range, sells diversified and necessary goods and has an excellent management team, led by Ross, with a demonstrated track record of operational execution and capital allocation,” Martin D. McNulty, Jr., Acacia’s Chief Executive Officer, said in a press release.

”With attractive cash conversion characteristics, modest capital requirements and attractive value creation opportunities we are pleased to add Deflecto as a key business to our growing portfolio. The transaction is expected to deliver immediate and significant revenue to Acacia and be accretive to free cash flow and earnings per share,” the CEO added.

Stock Performance

The shares of Acacia Research Corporation (ACTG) closed 1.27% ($0.06) higher at $4.79 on Nasdaq on Monday.

The company’s total market cap now stands at $480.796 million.

The shares of Acacia Research Corporation (ACTG) went down 6.89% in 2023, compared with a 43.42% gain for the benchmark index, Nasdaq Composite (IXIC).

The company’s shares have risen 22.19% so far this year.