The Transaction Complements LTG's Acquisition of Bascom Research and Pending Merger with Document Security Systems
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Lexington Technology Group, Inc., an intellectual property management firm that has announced plans to merge with Document Security Systems, Inc. (NYSE MKT: DSS) pursuant to a pending merger transaction anticipated to close in the second quarter of 2013, announced today that it has made a strategic investment in VirtualAgility, Inc., a developer of user-friendly programming platforms that facilitate the creation of sophisticated business applications without programming or coding.
“LTG’s investment in VirtualAgility reflects our commitment to supporting operating businesses that hold strong IP rights,” said Jeff Ronaldi, CEO of Lexington Technology Group. “The stake complements our acquisition of Bascom Research, LLC in 2012, and it will be relevant to DSS, particularly to its AuthentiGuard® product line, which will benefit from the VirtualAgility’ collaborative development tools.”
The investment provides LTG with a minority stake in VirtualAgility, and the potential opportunity to expand its ownership in VirtualAgility over time, under DSS’s umbrella, once the proposed merger is completed. The VirtualAgility investment provides LTG with the opportunity to participate in VirtualAgility’s future growth and performance, including its pending patent litigation recently filed in the U.S. Federal District Court, Eastern District of Texas, VirtualAgility v. Salesforce.com et al., Civil Action No.2 , 2:13-CV-00011. VirtualAgility’s leading edge inventions are protected by five issued U.S. patents and multiple trade secrets. The company also has several additional patents pending on innovative systems and methodologies.
“VirtualAgility is delighted to be able to avail itself of a value-added investor like Lexington Technology Group that also can provide significant operating experience,” said Stuart Rudolph, President and CEO of VirtualAgility. “We are looking forward to the prospect of helping DSS expand its leadership in authentication and anti-counterfeit solutions as well as continue to grow VirtualAgility.”