INSIDE Secure has entered into an agreement to purchase Authentec’s Embedded Security Solutions (ESS), a business which designs and develops encryption-related security hardware intellectual property and software for a variety of industries, including the mobile and networking markets.
INSIDE Secure will pay $38 million in cash subject to a working capital adjustment and up to an additional $10 million subject to completion of post-closing transactions. The transaction is expected to close before the end of 2012 subject to certain customary closing conditions.
Apple purchase Authentec in July which lead to speculation that future generation of iOS mobile devices will include fingerprint scanners.
The Embedded Security Solutions enables INSIDE Secure to offer complete security architecture, as well as additional solutions for securing both content – Digital Rights Management – and data exchange.
Embedded Security Solutions complements INSIDE Secure’s know-how with a team of 79 employees located in Europe, Asia and in the U.S., as well as its security intellectual property and technology portfolio, which aligns with INSIDE’s long-term strategy to generate its own IP licensing revenue.
This acquisition will enable INSIDE Secure to access a wider customer base in the mobile, content provider and network industries that serve a variety of application markets and leverage the capabilities of INSIDE Secure’s existing Mobile NFC and Digital Security businesses.