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.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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