J.P. Morgan Give Thoughts On The Secondary For Acacia Research

According to J.P. Morgan, Acacia Research ACTG is positioned to raise over $150 million in a 'bought overnight' secondary offering of 5 million shares. J.P. Morgan reported that though the stated use of proceeds is 'general corporate purposes' it believes ACTG's strategic intent is to invest directly in patent portfolios, in some cases a minority owner alongside operating companies. “The deal is about 13% dilutive to 2012 EPS, but the stock remains attractive on an EV/EBITDA basis, in our view. We think ACTG is well-positioned to earn a positive ROI on the funds secured in this capital raise, and the company is doing the transaction ahead of what we believe will be strong 1Q results. Reiterate Overweight. Price Target remains $39.00.” Acacia Research closed yesterday at $33.53.