Apple to Buy AuthenTec
Last Update: 7/27/2012 8:07:23 AM
By Saabira Chaudhuri
Apple Inc. (AAPL) has agreed to buy fingerprint authentication sensor maker
AuthenTec Inc. (AUTH) for about $350 million as the consumer-electronics giant
puts a chunk of its massive cash holdings to work.
Pricewise, the deal is one of Apple's bigger. Known for being secretive, Apple
didn't immediately disclose its intentions for the technology. Even AuthenTec
said in its filing with the Securities and Exchange Commission that it "cannot
comment on Apple's intentions" for the company.
AuthenTec holders will receive $8 a share in cash, a 58% premium over Thursday's
close. Shares, which have climbed almost 60% this year, last traded above the
offer price in summer 2008 and later slid to under $2 a share during the
financial crisis amid worries about biometrics demand. In premarket trading, they
surged to $8.04, topping the bid price.
Apple will pay AuthenTec $20 million to acquire non-exclusive licenses and
certain other rights with respect to hardware technology, software technology and
patents of the company.
The deal, which is subject to a go-shop provision, carries a nearly $11 million
termination fee.
At June 30, Apple listed $117.2 billion in cash and cash equivalents and
short-term and long-term marketable securities. It declared a quarterly dividend
and massive share buyback plan earlier this year, heeding investor calls.
Earlier this week, Apple said its fiscal third-quarter earnings climbed 21% as
the consumer electronics giant continued to see stronger iPhone and iPad sales,
though overall earnings and revenue grew less than analysts had expected.
In May, AuthenTec said its first-quarter loss had widened as the company saw its
revenue fall. |
