L-1 Identity Solutions [ID] yesterday said it has retained the investment firms Goldman Sachs and Stone Key Partners, LLC, to be its financial advisers as it explores its strategic alternatives.
The company said the ongoing review may not result in a sale of the company or any other transaction taking place.
L-1 has said before that 2010 would be a “pivotal” year for the company and announced earlier this year that it had begun the process to review its strategic alternatives, which frequently refers to a company putting itself up for sale (Defense Daily, Feb. 11).
L-1 is burdened by debt, which limits its investment opportunities, and has been unhappy for some time about how the investment community is valuing it. Yesterday’s news sent the company’s stock price up 34 cents, or 4 percent, to close at $8.86, still well below the more than $11per share L-1 believes it is worth.
L-1 was created through the acquisitions of the former firms Viisage and Identix in 2005 and 2006, respectively. Coupled with several more purchases in the following years, L-1 became the only comprehensive identity solutions provider serving the federal, state and local and international markets.