Digimarc files with SEC to spin off business

The company filed a registration statement with the Securities and Exchange Commission for the newly created entity DMRC Corp., which will be separated from the company. The spin-off is required as part of the pending acquisition of the company's identification systems business by L-1 Identity Solutions Inc. and must be completed before the deal closes, Digimarc said.

Following the spin off, the new entity will change its name to Digimarc Corp., the company said.

In March, L-1 offered Digimarc $250 million in cash and stock for its ID systems business, which Digimarc says is now worth $263 million based on L-1's recent stock price.

Earlier Monday, Digimarc said that French conglomerate Safran SA offered $300 million for the company. Safran has also indicated that it would agree to the spin-off of the business, Digimarc said.

Digimarc shares fell 16 cents to $13.18 in aftermarket trading, after rising $1.42, or 12 percent, to end the regular session at $13.34.