Apple Acquires AuthenTec For $356 Million
Apple has acquired AuthenTec for $356 million. AuthenTec is a company that sets up hardware and software security for PCs and mobile devices. AuthenTec’s customers include Samsung, Cisco, HBO, HP, Nokia, Orange, and Texas Instruments.
AuthenTec was trading at $5.07 as of last night, but Apple will be buying the company out for $8 per share. AuthenTec has over 200 filed and issued patents in the U.S. The patent portfolio ranges from biometric fingerprint sensor technology to embedded security devices.
Apple will be paying $20 million for “non-exclusive licenses and other rights” for the hardware, software, and patents. Apple has the option to pay a one-off fee of $115 million to make the non-exclusive licenses perpetual.
Apple will pay a $7.5 million fee for “engineering services” and new I.P. coming out of AuthenTec, which will become Apple’s property. According to “non-exclusive” clauses in the 8-K filed by AuthenTec, the company will continue licensing existing technology to its partners.
Samsung had recently selected AuthenTec to help them with enhancing enterprise security in their new Android smartphones and tablets.