Friday, July 27, 2012

Apple Buys Melbourne AuthenTec For $356 Million

MELBOURNE, Florida -- AuthenTec, Inc., a technology company located at 100 Rialto Place in Melbourne, Florida, announced today via an 8-K filing with the Securities and Exchange Commission that it has entered into an Agreement and Plan of Merger with Apple Inc.  The Merger Agreement was unanimously approved by the AuthenTec’s Board of Directors. 

The purchase price was $8 per Authentec share of stock, with 44.51 million shares outstanding, or $356 million.  Today the stock is trading at $8.43 per share - a 66% increase from yesterday's close of $5.08 per share.

Intellectual Property Agreement
In addition to the Merger Agreement, came an Intellectual Property and Technology Agreement which provided Apple with the right to acquire non-exclusive licenses and certain other rights with respect to hardware technology, software technology and patents of AuthenTecFor the right to acquire such non-exclusive licenses and other rights, Apple will pay the AuthenTec $20 million. 

Apple will have 270 days from the date of the Intellectual Property Agreement to choose, in its sole discretion, to license certain hardware technology and patents and/or certain software technology and patents on a perpetual, non-exclusive basis for an aggregate sum of up to $115.0 million. 

Development Agreement 
Apple and AuthenTec also entered into a Development Agreement under which AuthenTec will perform certain non-recurring engineering services for Apple for product development and will receive payment of a total of up to $7.5 million for performance of the development work.  New intellectual property resulting from the services is to be owned by Apple and certain limited licenses with respect to the services and resulting work product will be granted by the parties. AuthenTec will act as an independent contractor under the terms of the Development Agreement.