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Apple to purchase AuthenTec for $356 million

 

Last week, Apple entered into an agreement to purchase AuthenTec Inc. for approximately US$356 million. According to a SEC filing, Apple is offering US$8 per share in cash for the company.

AuthenTec specializes in offering content and data protection, access control and strong fingerprint security on mobile devices.

The firm’s clients include many members of the Fortune 500 including Alcatel-Lucent, Cisco, Fujitsu, HP, LG, Motorola, Nokia and Texas Instruments. AuthenTec provides these companies with encryption technology, fingerprint sensors and identity management software. Samsung currently uses AuthenTec’s virtual private network (VPN) security solution in its Android smartphones and tablets.

The firm has shipped more than 100 million fingerprint sensors for use in PCs and in over 15 million mobile phones. Further, AuthenTec has nearly US$70 million in sales, with 64 percent of its revenue coming from its fingerprint and other smart sensors and the rest coming from network and mobile system security solutions.

Through the acquisition, Apple will obtain many of the foundational technology patents for fingerprint biometrics, along with a broad patent portfolio consisting of 200 issued and filed patents in the United States. Previously, Apple paid US$20 million to use AuthenTec’s patented area fingerprint sensors and modules.

BiometricUpdate.com has previously reported about AuthenTec’s new technological developments including fingerprint sensors for near field communication (NFC) phone and tablets and its creation of the world’s smallest USB fingerprint reader.

After announcement of the news, shares in AuthenTec were trading at a 58% premium over its Thursday close price of $5.07.

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