Acacia Research Corporation, together with its subsidiaries, invests in intellectual property and related absolute return assets; and engages in the licensing and enforcement of patented technologies. The company operates through two segments, Intellectual Property Operations and Industrial Operations. The company owns or controls the rights to various patent portfolios, which include U.S. patents and foreign counterparts covering technologies used in a range of industries. It has executed approximately 1,600 license agreements, and approximately 200 patent portfolio licensing and enforcement programs. It also designs manufactures printers and parts, and consumable products through dealers and distributors for various industrial printing applications. In addition, the company offers supply-chain printing solutions for manufacturing, transportation and logistics, retail distribution, food and beverage distribution, and pharmaceutical distribution industries; and line matrix printers for mission critical applications within labeling and inventory management, build sheets, invoicing, manifests and bills of lading, and reporting industries. Acacia Research Corporation was incorporated in 1993 and is based in New York, New York.
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A smaller, tech-focused Berkshire Hathaway.
Like IAC (InterActiveCorp), but for a broader range of mature companies.
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- Patent Licensing: Acquires and licenses intellectual property, primarily patents, across various industries to generate royalty revenue.
- Strategic Investments: Makes strategic investments in public and private companies, often targeting those with valuable intellectual property or innovative technologies.
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Acacia Research (ACTG) Major Customers
Acacia Research (ACTG) operates with a hybrid business model, primarily focused on two distinct areas:
- Patent Licensing: Through its Acacia Technologies segment, it manages and licenses an extensive portfolio of intellectual property.
- Strategic Acquisitions and Operations: Through its Acacia Capital segment, it acquires and operates undervalued public and private companies.
Identifying its "major customers" requires a distinction between these segments:
1. Patent Licensing Segment (Acacia Technologies)
In its patent licensing activities, Acacia Research sells licenses for its intellectual property portfolio primarily to other companies.
Major Customers: Due to the confidential nature of patent licensing agreements and settlement terms, Acacia Research does not publicly disclose a consistent list of its "major customers" (licensees) in this segment. The companies that license patents from Acacia or settle infringement claims vary depending on the specific patent portfolios and ongoing enforcement campaigns. Historically, Acacia has licensed its intellectual property to hundreds of companies, often including large technology firms across various industries.
2. Strategic Acquisitions and Operations Segment (Acacia Capital)
In this segment, Acacia Research acquires and operates various businesses, such as Printronix and, more recently, a majority stake in Veritas Technologies. In this context, Acacia Research itself does not have direct "customers" in the traditional sense.
Instead, Acacia generates value and revenue from the financial performance and appreciation of its portfolio companies. These subsidiary companies (e.g., Printronix in industrial printing solutions, Veritas Technologies in data management) have their own distinct customer bases in their respective markets, but they are not direct customers of Acacia Research itself.
Conclusion: While Acacia Research sells primarily to other companies in its patent licensing segment, specific names of these major customer companies are not publicly disclosed due to confidentiality.
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Martin D. McNulty, Jr. Chief Executive Officer
Martin D. McNulty, Jr. was appointed as Acacia's permanent Chief Executive Officer in February 2024, after serving as Interim Chief Executive Officer since November 2022. He has also been the Company's Chief Operating Officer and Head of M&A since March 2022. Before joining Acacia, Mr. McNulty served as a Managing Director at Starboard Value, LP, and was the Chief Executive Officer and a member of the Board of Directors of Starboard Value Acquisition Corp (NASDAQ: SVACU) from June 2020 until its merger with Cyxtera Technologies Inc. in February 2021. Acacia Research has a strategic relationship with Starboard Value, LP, its controlling shareholder, indicating a pattern of managing companies backed by private equity firms.
Michael Zambito Chief Financial Officer
Michael Zambito was appointed Chief Financial Officer of Acacia Research, effective June 24, 2025. He brings 30 years of experience from Ernst & Young, where he most recently spent over 23 years, including 17 years as a Partner, in EY-Parthenon (formerly Strategy and Transactions) practice. Prior to this, he worked for seven years in Ernst & Young's NY audit practice. Mr. Zambito’s expertise encompasses finance, accounting, and mergers and acquisitions.
Gavin T. Molinelli Chairman of the Board
Gavin T. Molinelli has served as Chairman of the Board and a director since October 2022. He is currently a Partner and Co-Portfolio Manager of Starboard Value LP, a New York-based investment adviser. Before Starboard's formation in 2011, Mr. Molinelli was a Director and Investment Analyst at Ramius LLC for the funds comprising the Value and Opportunity investment platform.
Robert Rasamny Chief Administrative Officer
Robert Rasamny serves as the Chief Administrative Officer of Acacia Research.
Jason W. Soncini General Counsel
Jason W. Soncini is the General Counsel for Acacia Research.
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The clear emerging threat for Acacia Research (ACTG) is the ongoing and evolving legal landscape surrounding patent enforceability in the United States. This includes:
Continued Narrowing of Patent Eligibility: Judicial interpretations, particularly from the Supreme Court (e.g., *Alice Corp. v. CLS Bank International*) and the Federal Circuit, are consistently tightening the standards for patent-eligible subject matter, especially concerning software, business methods, and abstract ideas. This trend makes it increasingly difficult and costly for companies like Acacia Research to acquire, assert, and successfully monetize patents in these areas, directly impacting their core asset valuation and licensing revenue potential.
Persistent Effectiveness of Inter Partes Review (IPR): The Patent Trial and Appeal Board (PTAB) continues to be an effective forum for challenging and invalidating patents through IPRs. This administrative process provides a robust and often more cost-effective defense mechanism for accused infringers, significantly increasing the risk and reducing the potential returns for patent assertion entities, thereby eroding the value of patents that Acacia Research acquires.
These are not vague hypothetical threats but ongoing systemic changes in the legal and regulatory environment that directly undermine the business model of a patent monetization company, akin to how new technologies disrupted established industries in the historical examples provided.
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Acacia Research (symbol: ACTG) operates across several business segments, each addressing distinct markets:
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Intellectual Property (IP) Operations: Acacia Research invests in and licenses patented technologies, focusing on sectors like semiconductor, telecommunications, and software.
- The global intellectual property licensing market was valued at approximately USD 340 billion in 2024 and is anticipated to reach USD 580 billion by 2033, with North America holding about 40% of the market share.
- More specifically for semiconductor intellectual property (IP), the global market size was estimated at USD 6.94 billion in 2024 and is projected to reach around USD 17.06 billion by 2034.
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Industrial Operations: This segment includes businesses like Printronix, which manufactures industrial printers, and Deflecto, which produces a variety of industrial and consumer goods.
- Industrial Printers (Printronix): The global industrial printer market was estimated at USD 91.7 billion in 2024 and is projected to grow with a compound annual growth rate (CAGR) of 6.2% from 2025 to 2034. North America accounted for approximately USD 25.15 billion of this revenue in 2024.
- Office Supplies (Deflecto): The global office supplies market size was valued at USD 177.53 billion in 2024 and is projected to grow to USD 198.98 billion by 2032.
- Air Venting Products (Deflecto): The Global Ventilation System Market was valued at USD 29.5 billion in 2024 and is expected to reach USD 56.6 billion by 2033.
- Road Safety Products (Deflecto): The global road safety market size stood at USD 24.34 billion in 2025 and is projected to reach USD 61.97 billion by 2034.
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Energy Operations (Benchmark Energy): This segment focuses on the acquisition, exploration, development, and production of oil and natural gas resources in regions like Texas.
- The global oil and gas exploration and production market size was estimated at approximately USD 5,820.40 billion in 2024 and is predicted to grow to about USD 18,986.90 billion by 2035.
- The U.S. oil and gas market, highly relevant for Benchmark Energy's operations in Texas, was valued at USD 453.2 billion in 2024 and is expected to reach USD 474.5 billion in 2025.
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Here are 3-5 expected drivers of future revenue growth for Acacia Research (ACTG) over the next 2-3 years:
- Strategic Acquisitions and Integration: Acacia Research is focused on acquiring and integrating new businesses across the industrial, energy, and technology sectors. The company leverages its substantial capital base and experienced management team to identify and execute accretive organic and inorganic growth opportunities, a strategy that has already demonstrated significant revenue contributions, such as with the Deflecto acquisition. This approach to acquiring undervalued companies is a core part of its strategy to drive stable revenue.
- Growth in Manufacturing Operations: The Manufacturing Operations segment, significantly driven by the Deflecto business, has shown robust and sequential revenue growth. Future growth is expected through operational initiatives including strategic price increases, reshoring efforts, cost reduction measures, and enhancements in go-to-market strategies within this segment.
- Monetization of Intellectual Property (IP) Assets: The Intellectual Property Operations segment, despite its volatility, experienced a strong rebound and contributed significantly to revenue in Q3 2025 through settlements and licenses. The ongoing potential to generate substantial value from its intellectual property portfolio through licensing and settlements is expected to be a key revenue driver.
- Performance of Energy Operations: Acacia's Energy Operations segment, primarily Benchmark, consistently performs well, generating stable operated production and strong cash flow. With a significant portion of its oil and gas production hedged through early 2028, this segment is positioned for continued stable revenue contributions.
- Operational Efficiencies and Cost Management across Segments: Across all its operating businesses, including industrial operations like Printronix, Acacia is committed to driving operational efficiencies and disciplined cost control. These ongoing initiatives are aimed at optimizing profitability and contributing to overall revenue growth by enhancing the performance of its diversified portfolio.
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Share Repurchases
- On November 9, 2023, the Board authorized a stock repurchase program for up to $20.0 million, with a cap of 5,800,000 shares and no specified time limit.
- Acacia Research completed this $20.0 million share repurchase program in December 2024, acquiring 4,358,361 shares of common stock.
Share Issuance
- A Rights Offering closed on March 1, 2023, resulting in the sale of 15,068,753 shares, including 15,000,000 shares acquired by Starboard Value for $78.8 million.
- The number of shares outstanding increased significantly to 99.69 million in 2023 from 41.36 million in 2022, primarily due to this recapitalization.
Inbound Investments
- Starboard Value became the controlling shareholder in July 2023 after a recapitalization transaction, owning approximately 61% of the company.
- Starboard Value acquired 15 million shares for $78.8 million in the March 2023 Rights Offering.
- Institutional investors hold a substantial portion of Acacia Research's stock, with 86.69% ownership.
Outbound Investments
- In October 2023, Acacia Research acquired a majority stake in Benchmark Energy II, LLC to acquire and produce oil and gas resources. This was followed by the acquisition of additional oil and gas properties in the Western Anadarko Basin in April 2024 for $145 million through Benchmark.
- The company acquired Deflecto, a specialty manufacturer, for $103.7 million in October 2024, funded by cash on hand and a new senior secured credit facility.
- In Q2 2025, Acacia Research partnered with Unchained Capital and Build Asset Management, committing $20 million to purchase a portfolio of commercial loans collateralized by Bitcoin.
Capital Expenditures
- In Q2 2025, cash was reduced by $3.9 million in capital expenditures at Benchmark and $0.4 million at Deflecto.
