NEW YORK, Oct. 2, 2012 /PRNewswire/ -- Document Security Systems, Inc. (NYSE MKT: DSS), a leader in anti-counterfeit, authentication, and mass–serialization technologies, and Lexington Technology Group, Inc., a privately-owned company that owns and manages intellectual property assets, today announced they have signed a definitive merger agreement. Upon receipt of shareholder approval from each company, the combined company will continue to be known as Document Security Systems, Inc. and will be led by current Lexington Technology Group CEO Will Rosellini , who will replace Patrick White as CEO of DSS.
The strategic combination with Lexington Technology Group will enable DSS to substantially increase its intellectual property portfolio, add significant talent with a proven record in technological innovation, and be positioned to enhance its revenue through the monetization of the combined company's intellectual property assets.
"The combination of DSS and Lexington will yield a company with both a wealth of intellectual property and industrial assets that we believe can generate revenues from commercial application of these and other technologies," says DSS Chairman Robert Fagenson. "The broadened management team has the depth and experience needed to capitalize on the patent portfolio and a balance sheet with significantly increased working capital to operate the company. We trust our shareholders will share our enthusiasm for the prospects for the combined company going forward."
Lexington Technology Group owns patent assets acquired from Thomas L. Bascom, president of LinkSpace, LLC. These patents are fundamental to important areas of technology that are currently widely in use and growing at significant rates. Lexington Technology Group and LinkSpace, LLC are collaborating through Lexington Technology Group's wholly-owned, Virginia-based subsidiary Bascom Research, which invests both expertise and capital in the development of RFID medical technology. Bascom Research intends to integrate its technology with LinkSpace's enterprise-level software framework and DSS's digital security and RFID technology for electronic health records (EHR) in an effort to improve throughput and patient safety in hospitals."We believe this merger will enhance the existing efforts of both entities to broaden revenue generation through the pursuit of market opportunities, and the licensing and protection of our combined intellectual property portfolio," Rosellini says. "We expect to file an IDE with the FDA to begin clinical trials at Virginia-area hospitals with our integrated suite of next-generation patient-centric software in 2013. We expect that this development will be financed with the proceeds from a licensing campaign managed by the patent monetization firm IPNav." "We expect that licensing at fair and reasonable rates could provide steady base revenue, while strategic litigation has the potential to produce significant benefits for investors," Rosellini says. "Because our model is supported by stable, ongoing licensing revenue, we won't have to make investment decisions based on quarterly earnings—which we believe could be a tremendous advantage for our investors."