Business Merger Deal In Works For California-Based Apple
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Wednesday, August 22, 2012.
Securities and Exchange Commission filings show that the recent merger between two companies is a bit more complex than it may appear at first glance. California powerhouse Apple recently reached a business merger deal to buy AuthenTec for a reported $356 million. Apparently, however, initial talks were not for the two companies to merge. Instead, AuthenTec originally tried to entice companies to assist in the development of a new technology AuthenTec had been working on. Apple was evidently the only company to express interest in that possibility.
AuthenTec is well-known for pioneering biometric security involving fingerprint sensors used on mobile devices. While Apple expressed that interest in helping develop the technology early on, eventually the company stated that they would prefer to buy the other company entirely. Apple also reportedly said that no sale would mean no dice on developing the software any further.
Even once the two companies had apparently worked out the kinks in a merger and acquisition deal, more hurdles still arose. Apple apparently got spooked when it saw something it didn't like in the due diligence process. The company was apparently eyeballing a return to cooperating on the software development rather than buying AuthenTec, but whatever due diligence concern they had was worked out by AuthenTec. The proposed sale was back on and it seems that the deal went down by the end of July.
Of course, it's still not a 100 percent done deal. AuthenTec shareholders are said to need to vote to approve the deal. California tech enthusiasts and business professionals who work in the industry may be interested to see whether this business merger deal actually does come to fruition. With Apple offering new mobile devices fairly often, the technology being developed in the wake of this merger could be quite intriguing to watch out for.
Source: GigaOm.com, "Pre-merger, Apple, AuthenTec were working on new tech together," Erica Ogg, Aug. 16, 2012