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Marriages of Convenience; M&A can present a compelling solution to litigation.

Publication: Mergers & Acquisitions: The Dealmaker's Journal
Publication Date: 01-OCT-09
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Byline: Ken MacFadyen

Mergers aren't always borne out of goodwill. On occasion, new combinations will spring forth from two warring parties, as an acquisition or sale can sometimes present the easiest path to end litigation.

In the third week of August, for instance, Danaher Corp.'s Ormco unit acquired a 10% stake in Align Technology as part of a settlement to end a patent infringement lawsuit. The two sides, which had been fighting over orthodontic patents, also entered a seven-year collaboration agreement to create a product that pulls from each other's technology. On top of everything else, Align also agreed to a $13 million cash payment. Align's...

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