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Summary:

Apple has purchased a mobile security firm that counts many of its mobile competitors as partners. Why? Apple may be eyeing fingerprint-based authentication for iPhones, or perhaps it wants AuthenTec’s NFC-payment security technology for a future iPhone with mobile payment capabilities.

AuthenTec chip

Apple has agreed to purchase mobile security firm AuthenTec for $356 million. The deal was first reported by Reuters on Friday, but the SEC filing shows the deal was sealed on Thursday.

According to Reuters, Apple paid a premium of about 58 percent for the Melbourne, Fla.-based company, or about $8 per share.

So what is AuthenTec? Even if you’ve never heard of the company, many of Apple’s competitors — who are AuthenTec customers and partners — have.

AuthenTec makes fingerprint sensors that can authenticate access to mobile devices and PCs. The company says 100 million of its sensors have already been shipped and they’re in more than 20 million phones. It counts HP, LG, Motorola (now owned by Google), Nokia and Samsung as just a few of its customers.

As for why Apple would be interested in such a company, well, mobile security is obviously important. Apple may be eyeing fingerprint-based authentication for iPhones and MacBooks. Or maybe it’s interested in AuthenTec’s NFC-payment security technology for a future iPhone with mobile payment capabilities? Another asset AuthenTec has is a patent portfolio — it has 200 technology patents that are “foundational” to fingerprint biometrics.

A $356 million purchase is certainly small for a company as rich as Apple (it has $117 billion in the bank) but it falls in line with the company’s history of purchasing smaller firms. Most of Apple’s acquisitions tend to be software-based. But it’s been thinking hardware in recent months: At the end of 2011, it bought Israel-based flash memory maker Anobit. Along with earlier hardware acquisitions – it bought Intrinsity, which works on designing chips to run faster, in 2010; and in 2008 it acquired P.A. Semi, the company brought in to design Apple’s custom iPhone and iPad chips — Anobit and AuthenTec fit with Apple’s belief in controlling as many aspects of its products as possible, from the operating system down to the chips.

  1. Tech Marketer Friday, July 27, 2012

    Well, looking at the security issues raised in the last few months, this move from Apple was much needed. April 2012 was a busy month for Apple malware hunters fighting the Flashback Trojan horse, which has infected between 270,000 and 600,000 Macs. And now they have this recent rumors of Malware and virus attacks for this new Mac OS X 10.8 (aka. Mountain Lion).

    I personally like Apple OS and products, but when looking at the security issues I think that Apple really needs to look to Microsoft when it comes to handling OS security breaches. There is no disputing that Microsoft, having the dominant OS, faces far more security threats than Apple does. But Microsoft does a better job of warning customers and delivering fixes.

    Therefore, acquiring a proper security firm like AuthenTech, is a great decision that Apple has made. In my opinion, Apple should also consider educating it users about any suspected risks that they may face, since this is one of the most important things Apple can do, the same way you teach your kid to cross at the green light.

    I wish Apple all the very best for this new acquisition.
    http://www.dincloud.com/security

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  2. Fred Schlip Friday, July 27, 2012

    This makes sense as it is a usability play, not security. Instead of a clumsy pin, you swipe your finger and you get phone or MAC access. Of course, this is not a new idea. Most modern laptop running Window have biometrics built in. People still don’t use them as much as they could, go figure.

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  3. great… now how long until they sue everyone who makes fingerprint ID devices.

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  4. good deal for AuthenTec

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