SAN JOSE, Calif. -- Upek Inc., a supplier of biometric fingerprint devices, has launched an unsolicited bid to buy rival AuthenTec Inc.
If the deal goes through, it would create the world's leading fingerprint sensor company. These devices are used in cell phones, PCs and other products.
Under the plan proposed by Upek, AuthenTec stockholders would receive 50 percent of the common stock of the combined company. Upek stockholders would receive the remaining 50 percent of the common stock of the combined company.
It is expected that, at the proposed closing, the combined company would be publicly traded on the NASDAQ Stock Market.
Upek is a privately held company, with its principal stockholders consisting of Diamondhead Ventures, Earlybird Venture Capital, EDB, Morgan Keegan, Partners Group, Sofinnova Partners and Sofinnova Ventures.
In 2008, fingerprint sensor chip specialist Upek (Emeryville, Calif.) dropped its proposed $86.25 million IPO, blaming difficult market conditions for the move.
The company, formed in 2004 when STMicroelectronics NV spun off its fingerprint sensor business, had planned to trade on the NASDAQ, with Deutsche Bank Securities serving as lead underwriter.
In 2009, AuthenTec, a provider of fingerprint sensors, completed a transaction to acquire the assets of rival Atrua Technologies Inc. for approximately $4.9 million in cash. The asset purchase further extended AuthenTec's efforts in the wireless market.
In 2008, AuthenTec acquired the software assets of EzValidation Inc., a California-based provider of fingerprint sensor authentication and user interface software. AuthenTec (Melbourne, Fla.). acquired the portfolio of EzValidation software, including its EzPassport fingerprint authentication software.