New York based buyout shop Baker Capital has exited its investment in ADAPTIX Inc., selling the company to a subsidiary of Acacia Research Corp. for $160 million in cash. Carrollton, Texas-based ADAPTIX is a developer of mobile wireless systems. Evercore Partners served as financial advisors to ADAPTIX. Baker Capital first invested in ADAPTIX in 2004.
Baker Capital, the New York-based private equity firm focused on investments in digital communications, media and technology, LINK announced today that it has completed the sale of its portfolio company ADAPTIX, Inc. to a subsidiary of Acacia Research Corporation (Nasdaq: ACTG) for $160 million in cash.
ADAPTIX, based in Carrollton, Texas, is an award-winning technology company and pioneer in the development of OFDMA-based mobile wireless systems. The company owns an extensive portfolio of fourth generation (4G) patents that cover OFDMA-based standards, including Long Term Evolution (LTE) – Advanced, WiMax (802.16m) and Extended Generation Platform (XGP)/NG-PHS.
“We made our initial investment in ADAPTIX in 2004 because we recognized at an early stage the remarkable potential for wireless broadband technology and the importance of ADAPTIX’s intellectual property for that market,” said Robert Manning, General Partner of Baker Capital. “Much of the company’s success is attributable to having a management team with deep telecom experience and a vision of how to develop and grow its valuable portfolio of patents. Mike Pisterzi, ADAPTIX’s President and CEO, along with Tim Montgomery, Senior Vice President and CFO, and Byron Young, Vice President of Marketing and Technology, all did an outstanding job of nurturing the company’s intellectual property and delivering a strong strategic outcome for investors.”
“Baker Capital has been a very supportive partner for ADAPTIX during the past eight years, and we are extremely grateful for its commitment to the growth of the company,” said Mr. Pisterzi. “Their industry expertise, vision and resources were instrumental in helping us build value in the company as we developed our technology base and expansive 4G patent portfolio. It has been very rewarding to work with such dedicated and talented investors.”
Mr. Pisterzi added, “Our focus from the inception of the company has been on creating and developing the most efficient and scalable systems to support the ever increasing bandwidth needs of mobile subscribers. It has been very gratifying for all of us at Adaptix to witness the ultimate adoption of OFDMA as the technology of choice by the industry at large for 4G broadband wireless systems.”
“We are proud of our working relationship with ADAPTIX and our role in contributing to its development and success,” said Mr. Manning. “This sale demonstrates Baker Capital’s ability to leverage its digital communications expertise to identify growth markets and emerging technology companies with defensible strategies that produce long-term value for our investors.”
Evercore Partners served as financial advisors to ADAPTIX in connection with this transaction, and Wilson Sonsini Goodrich & Rosati acted as the company’s legal counsel. Ropes & Gray acted as legal counsel to Baker Capital.
About Baker Capital
Steven Goldberg (+1 646.805.2027) Stephanie Linehan (+1 646.805.2031) firstname.lastname@example.org
Baker Capital is a New York-based private equity firm with $1.5 billion under management in two funds. Founded in 1995, Baker Capital invests globally in digital communications, media and technology at all stages of development. The partners of Baker Capital have extensive private equity and operational experience, allowing the firm to provide its portfolio companies with not only capital but also valuable strategic thinking and relationships.