Proactiveinvestors recommends
Additional Information
Market: NASDAQ
Sector: Support Services
EPIC: AUTH
Latest Price: 3.78  (-0.79% Descending)
52-week High: 4.05
52-week Low: 2.25
Market Cap: 168.25M
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
AuthenTec
www.authentec.com

AuthenTec is a provider of security, identity management and touch control technologies for personal computer, wireless device and information technology markets. The Company provides a series of products, including fingerprint sensors, software and intellectual property cores.

Full AuthenTec profile here
Pdf

AuthenTec acquires UPEK In Deal Worth Up To $31 million

7th Sep 2010, 4:37 pm by Phil Cheng
AuthenTec acquires UPEK In Deal Worth Up To $31 million

AuthenTec (NASDAQ:AUTH), a provider of fingerprint security technology based in Florida, announced that it has acquired privately-held industry peer, UPEK. 


UPEK’s  fingerprint authentication hardware and software are integrated into laptops from four of the world's top five largest PC makers, as well as various USB flash drives, external hard disk drives, and mobile phones. UPEK also provides consumer packaged products including the Eikon Digital Privacy Manager, a fingerprint reader that supports PCs and Macs. UPEK had unaudited revenue of $18 million in 2009 and $11.7 million in unaudited revenue in the first half of 2010.


In exchange for UPEK’s shares, AuthenTec offered 5.9 million shares of its common stock and a convertible promissory note with a $21.6 million principal amount.  The note obligation can be satisfied with either 8 million shares of AuthenTec common stock, which needs to receive shareholder approval, or the repayment of principal.  If shares are issued to satisfy  the note, UPEK would own 31% of the combined company. 

Using AuthenTec’s September 3 closing price of $1.67, the deal gives UPEK a valuation of  $23.21 million to $31.45 million, depending on whether the 8 million share issuance receives approval from AutheTec’s shareholders.


AuthenTec announced that Larry Ciaccia will replace Scott Moody, AuthenTec’s founder, as the CEO of the newly combined company. Scott Moody will continue to be a member of the board of directors.  AuthenTec will also add two new directors from UPEK to its board, Dr. Ronald Black and Jean Schmitt.  AuthenTec has also appointed Philip Calamia as interim CFO. 


Commenting on the merger, Larry Ciaccia said,"Together, we are able to achieve enhanced profitability through synergistic cost reductions, gain depth and expertise as an expanded global team advancing our technology and product roadmaps, and add to an unmatched patent portfolio."


“By combining with UPEK, we gain a team with a proven track record in biometrics, a large installed base for its Protector Suite(TM) software application, a higher margin government biometric business, and a leading position with a top five PC OEM [original equipment manufacturer].”


The transaction is expected to produce in excess of $10 million in cost synergies and the transaction will be accretive to AuthenTec’s earnings per share by the second quarter of 2011.  After the merger, AuthenTec will have a total of 200 issued and filed US patents.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.