SAN JOSE, Calif. -- AuthenTec Inc., a provider of fingerprint sensors, has acquired SafeNet Inc.'s Embedded Security Solutions Division.
Under terms of the transaction, AuthenTec paid $8.5 million in cash and issued 1.2 million shares (valued at $2.8 million at the closing) of its common stock. The transaction also calls for an earn-out of up to $2.5 million in cash based on the attainment of certain revenue goals for the remainder of 2010.
AuthenTec will tap into SafeNet's Embedded Security Solutions staff of encryption, algorithm, software and IP. Its products include SafeXcel IP cores, QuickSec Embedded Security toolkits, Mobile VPN and Digital Rights Management (DRM) Fusion Solutions.
As reported, Upek,, a supplier of biometric fingerprint devices, has launched an unsolicited bid to buy rival AuthenTec. 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.
AuthenTec said it ''rejects the proposal on the basis of its inadequate financial terms and a lack of confidence in Upek's financial position.''