Mobile security solutions AuthenTec, Inc.(NASDAQ:AUTH)
is selling its embedded security solutions business to Inside Secure, for
around $48 million, Tech Crunch reported on Monday.
Last July, Reuters had reported that Apple
Inc.(NASDAQ:AAPL) was acquiring AuthenTec for about $356 million. However this
piecemeal sale indicates that Apple is interested only in other products made
by the company such as its fingerprint sensors, identity management and its
portfolio of patents.
The embedded security solutions business includes
encryption algorithms that provide protection to mobile devices such as LG,
Samsung, Motorola and Nokia.
According to NFC World Apple hasn’t yet expressed any
interest in using NFC (near field communication) in its own devices. However
AuthenTec uses its fingerprint sensors in a combined method with NFC for
potential use in contactless payments.
Tech Crunch said that the sell-off of non-essential
parts of AuthenTec’s business today probably helps Apple accomplish a couple of
things. If the initial Reuters report of the acquisition remains accurate (and
it should, according to government records), it recoups investment on parts of
the business which aren’t essential to Apple’s plans."
The fact that Apple is buying only a part of the
business also relieves its competitors about the company gaining undue control
over technology which are essential to the protection of their products. This
might have led to more patent wars and infringement cases.
Tech Crunch said that this acquisition would take a
while to start showing benefits to the company.
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