Digimarc gets higher takeover bid from France's Safran

In March, Digimarc agreed to sell its ID systems business to L-1 Identity Solutions for $250 million in cash and stock. Digimarc said the deal now values it at $263 million based on L-1's recent share price.

Digimarc's board said the Safran bid could "reasonably be expected to lead to a superior proposal"--a legal stipulation that would allow the company to break its agreement with L-1.

In a statement early Monday, L-1 said its acquisition agreement with Digimarc remains in effect and the company would have five days to enter a counter offer if Digimarc deems the Safran bid superior.

The board is still reviewing the Safran offer, Digimarc said.

The L-1 agreement has already received antitrust approval. It still would require a positive shareholder vote.