A few months ago Apple has acquired AuthenTec in a transaction valued at several hundred million dollars. Although it was not known exactly why Apple acquired the company that develops security solutions, official documentation of the transaction provides all the important details we need to know. It seems that Apple initially tried to acquire a certain technology from the company and after failing to convince it to sell only that technology, made an offer to acquire the entire company.
The document revealed negotiations with Apple began in late 2011 when AuthenTec began approaching "several leading consumer electronics companies" regarding acquiring a new technology. After an agreement with Apple made in Feb. 2012 to acquire the new technology fell through, Apple ultimately offered to acquire the company. On May 1, Apple decided it wouldn't be satisfied with a commercial agreement and notified AuthenTec's representatives of its proposal to acquire the company instead. Apple offered a price of $7.00 per share, valuing AuthenTec at a 115% premium over the closing price of its common stock as a day previous, pricing that Apple believed "other potential buyers would be unwilling to pay."
From the same recently published documentation, it appears that Apple was interested in acquiring a technology that allows the reading of fingerprints in 2D format and to implement it in iDevices/Macs in the future. Since Apple paid a higher price for this company than the one at which it was listed on the stock market, we can conclude that the technology it wants is important and will end up in iDevices in the not too distant future.
The IP agreement provides Apple with the right to acquire non-exclusive licenses and certain other rights with respect to hardware technology, software technology and patents of the Company for commercialization of 2D fingerprint sensors for use in or with Apple products. For the right to acquire such non-exclusive licenses and other rights, Apple will pay us $20.0 million. Apple will have 270 days from the date of the IP agreement to choose, in its sole discretion, to license certain hardware technology and patents and certain software technology and patents from us on a perpetual, non-exclusive basis for an aggregate sum of up to $115.0 million. Apple can choose to acquire either the non-exclusive hardware technology and patent rights ($90.0 million), the non-exclusive software technology and patent rights ($25.0 million) or both.
Of course, no one knows now exactly when Apple will implement the respective technology in its products, but all the published information suggests that the company has either already started developing iDevices/Macs that contain it, or the development process will start in the future near. Now speaking seriously, is there a need for a fingerprint reader in our iDevices? Of course, it would be very useful for the police or other similar bodies, but do we need it?
As a result of its focus on timing, Apple's representatives also informed the Company that Apple would not participate in an auction process and would rescind its proposal if the board decided to solicit alternative acquisition proposals for the Company. Mr. Ciaccia responded that he would convene a board meeting to discuss the proposal and would revert to Apple with the board's position on Apple's proposal.... Apple emphasized its requirement that the development of the technology would not be interrupted regardless of whether the proposed transaction was completed. On the evening of July 19, the parties agreed to the key terms of the IP agreement and the development agreement.
