Home Technology Apple Buys AuthenTec For $356 Million Cash

Apple Buys AuthenTec For $356 Million Cash

Apple Buys AuthenTec For $356 Million Cash

Apple Inc. (NASDAQ:AAPL) has acquired AuthenTec, Inc. (NASDAQ:AUTH), for a deal estimated to be worth $356 million; at $8.00 per share, Reuters reports. AuthenTec is a maker of fingerprint sensors used in computers and mobile devices for security purposes.

According to the report, the company produces security software and chips for mobile phones and computers, which it licences to leading electronic companies, such as Samsung Electronics Co., Ltd. (LON:BC94). AuthenTec is also involved in the production of Near-field Communication and chips for fingerprint recognition.

Details of the deal between the two companies were disclosed to the Securities and Exchange Commission (SEC), by the Melbourne, Florida-based Authen Tec, in the Form 8-K filing. This is likely to invigorate the tussle between Apple and Samsung Electronics, bearing in mind that Samsung was one of the major customers of Authen Tec. Just last week, the company signed a deal with Samsung on “QuickSec VPN security, for use in its new Android smartphone and tablet models.”

Earlier this week, Authen Tec was in the center of attention after it enabled Portugal Telecom to Securely Deliver Mobile Video to Android and Apple Smartphone and Tablet Users.

Elsewhere, The Next Web (TNW), highlighted the details of the company’s activities as revealed in the company’s fact-sheet:

AuthenTec’s award-winning smart fingerprint sensors provide multiple touch-powered features that extend beyond user authentication to include convenience, personalization and touch control. The Company’s TouchChip area fingerprint sensors and modules comply with government and industry standards and offer the ruggedness, strong security and ease of integration needed for quick and broad deployment. TouchChip sensors dramatically lower the size, cost and power of fingerprint sensors versus optical-based fingerprint solutions.

According to TNW, Apple agreed to pay a total of $20 million for the licenses of the above technologies, and also affirmed that it will allow the company to license the patents on a non-exclusive basis for up to $115 million. The report also notes that Authen Tec claims to own 200 filed and issued U.S patents.

Apple Inc. (NASDAQ:AAPL) now welcomes a new set of clients, at least in a different line of business, and they include HBO, LG, Lenovo, Nokia, Samsung, Sky, orange, HP, Fijitsu, Cisco, Alcatel Lucent, and Texas Instruments. This pits the world’s most valuable company against some of its major rivals.

AuthenTec will also be receiving $7.5 million for any research it conducts for non-recurring engineering services, upon which they will immediately belong to Apple.

Nonetheless, Apple is yet to comment on the Acquisition. At the time of this writing, Authen Tec was up $3.18 or 62.92% to trade at $8.25 per share, representing over 4% gain on the acquisition price.