Apple Cuts Deal to Purchase Fingerprint Reader AuthenTec Inc.

Apple Cuts Deal to Purchase Fingerprint Reader AuthenTec Inc.A recent Chicago Sun-Times article announced that I-Phone / I-Pad powerhouse Apple has brokered a deal to acquire Florida-based AuthenTec Inc. in order to shore up its capabilities in terms of digital security. As smartphones become more and more a part of daily life for many consumers, including for online purchases, consumers are likely to expect heightened security.

It is widely speculated that Apple believes that Authentec’s fingerprint sensor technology could offer its smartphones that much-needed technology. For instance, this technology could more strongly protect data such as contact lists, banking information, and emails. Currently, the only real protection is through passwords, which are often forgotten, or can be guessed in many cases. However, Apple has given no indication exactly how it will use the technology, or when it will be revealed for the use of consumers.

Before the deal becomes final, a majority of Authentec’s stockholders must approve the estimated $356 million acquisition. Authentec’s board has already unanimously approved the deal. Although Authentec cannot actively court other purchasers at this point, it still can engage in talks with other potential purchasers prior to approval by its stockholders. If Authentec would choose to go with a higher acquisition offer from another company, however, it would be subject to a $11 million breakup fee, which could be costly.

When considering any sort of acquisition deal for your business, you must get legal advice from an Oak Brook business lawyer so that you are aware of the potential pitfalls and benefits of the deal into which you are entering. As breaking such a deal can be extremely costly, you have to be aware of the consequences should you choose to withdraw from the agreement. For legal counsel about your business, you will need the assistance of an experienced Oak Brook business attorney to guide you.