Urgency in Apple's Talks with AuthenTec Hints at Rapid Adoption of Fingerprint Scanning Technology

Late last month, fingerprint scanner firm AuthenTec announced that it had been acquired by Apple, naturally leading to speculation that Apple is looking to include the company's biometric security technology in its products.

authentec logo
A lengthy report from The Next Web now takes a look at the U.S. Securities and Exchange Commission filing documenting the negotiations that led to the acquisition, highlighting Apple's sense of urgency in obtaining access to AuthenTec's technology, whether through acquisition or licensing. According to the filing, Apple and AuthenTec began discussions in late 2011, with serious talks about a potential licensing deal starting up in late February 2012.

Then the agreement shifted completely.

On May 1, Apple decided it wouldn’t be satisfied with a commercial agreement and notified AuthenTec’s representatives of its proposal to acquire the company instead. Apple offered a price of $7.00 per share, valuing AuthenTec at a 115% premium over the closing price of its common stock as a day previous, pricing that Apple believed “other potential buyers would be unwilling to pay.”

On May 2, Apple started tightening the screws. The company believed its price was “very attractive” as AuthenTec would face challenges trying to develop new technologies for its rivals, which “have dozens of different smartphone platforms, in contrast to Apple’s unique narrow product platform, which allows for unity of design in component parts across significant unit volumes.”

The regulatory filing details how Apple insisted that negotiations proceed quickly due to its "product plans and ongoing engineering efforts", with Apple informing AuthenTec that it would not participate in an auction for the company due to the tight timeline. Negotiations continued under a tight time schedule, but they hit a snag when Apple discovered some unacceptable issues during its due diligence process, and discussions once again turned back to a potential licensing agreement rather than an acquisition.

[F]rom June 1 to July 3 both parties continued to “design and develop the technology for Apple and continued to negotiate to narrow the significant differences between the parties regarding acceptable terms for a commercial agreement.”

If there was a sign that Apple was hell-bent on integrating the technology in its products no matter what, this was it.

authentec mobile device scanner
Gears shifted once again in mid-July once AuthenTec reported that it had resolved the issues raised by Apple during the due diligence process, and a full acquisition of AuthenTec by Apple was once again back on the table. Negotiations over just a handful of days brought together the final package that saw Apple pay $8.00 per share for AuthenTec and make licensing-related payments totaling $135 million.

The Next Web points to Apple's urgency during the negotiations and willingness to obtain access AuthenTec's technology under whatever scenario it could achieve as reason to believe that Apple is under a very tight timeline to bring the technology to its new iOS device hardware. The technology would be a nice complement to iOS 6, serving as one component to unlock the potential of Apple's new Passbook digital wallet feature.

Throughout its meetings with AuthenTec, Apple was keen to express that work on the new technology must continue unhindered, regardless of whether it entered a commercial agreement (which involved royalties, patent licensing and its exclusive use) or it acquired the company.

Will we see fingerprint technology in the new iPhone (or iPad)? It seems almost certain.

Apple is expected to introduce the next-generation iPhone on September 12, and while part leaks seen so far have yet to reveal evidence of the incorporation of a fingerprint sensor, a number of observers have argued that the capabilities could be relatively easily incorporated into the device's home button.

Popular Stories

election results 2024 live activities

Track 2024 U.S. Election Results Live on Your iPhone Lock Screen

Tuesday November 5, 2024 5:02 am PST by
Apple News is providing Live Activities support for the 2024 U.S. presidential election, allowing iPhone and iPad users to track electoral results in real time directly from their Lock Screen. The feature is rolling out for U.S. users over the course of Election Day, November 5, providing continuous updates of the electoral count. So if you're interested, you don't need to repeatedly check...
ios 18 2 chatgpt plus

iOS 18.2 Beta 2 Shows Siri ChatGPT Limit, Offers 'Plus' Upgrade Option

Monday November 4, 2024 10:54 am PST by
With the second beta of iOS 18.2 that's available for developers today, Apple has further fleshed out the ChatGPT integration that's available with Siri. In the Settings app, there's now a section that shows the ChatGPT daily limit, and offers an option to upgrade to the paid ChatGPT Plus plan. The beta includes an Advanced Capabilities section with a "Daily Limit" reading that shows up as...
New Things Your iPhone Can Do in iOS 18

10 New Things Your iPhone Can Do in iOS 18.2

Thursday October 31, 2024 9:42 am PDT by
Apple is set to release iOS 18.2 in December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. There are a handful of new non-AI related feature controls incoming as well. ...
Generic iOS 18

Everything New in iOS 18.2 Beta 2

Monday November 4, 2024 12:34 pm PST by
Apple today seeded the second betas of upcoming iOS 18.2 and iPadOS 18.2 updates to developers, and Apple is continuing to refine the Apple Intelligence capabilities. There are also a handful of smaller features that are worth knowing about. Find My Find My has a new option to Share Item Location with an "airline or trusted person" that can help you locate something that you've misplaced....
best early black friday deals

The Best Early Black Friday Apple Deals

Friday November 1, 2024 8:21 am PDT by
We're officially in the month of Black Friday, which will take place on Friday, November 29 in 2024. As always, this will be the best time of the year to shop for great deals, including popular Apple products like AirPods, iPad, Apple Watch, and more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment,...
M4 M4 Pro vs M4 Max Feature

When to Expect New M4 MacBook Air, Mac Studio, and Mac Pro Models

Monday November 4, 2024 2:36 am PST by
Apple's fall 2024 Mac announcements have included new iMac, Mac mini, and MacBook Pro models, all of which debuted with variants of Apple's M4 chip. Apple intends to update the rest of its Mac lineup with M4 series processors over the next 12 months, which will make it the first time that Apple has used the same chip generation across all of its Macs. This means we can expect new M4...
M4 Pro on Blue

M4 Pro Chip Benchmark Results Reveal an Extremely Impressive Performance Feat

Thursday October 31, 2024 7:06 pm PDT by
The first Geekbench 6 benchmark results for the M4 Pro chip surfaced today. Impressively, the results that are available so far show that the highest-end M4 Pro chip is faster than the highest-end M2 Ultra chip in terms of peak multi-core CPU performance. Here is a comparison of the results: Mac mini with M4 Pro (14-core CPU): 22,094 multi-core score (average of 11 results) Mac Studio...

Top Rated Comments

DarkWinter Avatar
160 months ago
...

I would be VERY surprised if this made it into this year's iPhone. Apple isn't one to rush these things...
Score: 28 Votes (Like | Disagree)
AustinIllini Avatar
160 months ago
I picture Apple sitting across the conference table with a checkbook and pen in hand asking how much it's going to take for them to be bought out.


"Well, you see, I'm buying this hotel, and uh, setting some new rules about the pool area."
Score: 17 Votes (Like | Disagree)
miles01110 Avatar
160 months ago
The Next Web points to Apple's urgency during the negotiations and willingness to obtain access AuthenTec's technology under whatever scenario it could achieve as reason to believe that Apple is under a very tight timeline to bring the technology to its new iOS device hardware.

Or they wanted to move quickly so once competitors got wind of the deal they wouldn't get into a bidding war.
Score: 9 Votes (Like | Disagree)
Digitalclips Avatar
160 months ago
Imagine a homescreen button with a built-in finger print scanner! No more slide-to-unlock and wrong passcode. Others would not be able to use your phone either without you physically being there. :)

Oh come on, we've all seen the movie where they cut off the finger from the corpse to gain access .... ;)
Score: 8 Votes (Like | Disagree)
ThatsMeRight Avatar
160 months ago
If the next-gen iPhone, this fall, has got a fingerprint scanner it will be an instant buy. Why? I like fingerprint scanners.
Score: 8 Votes (Like | Disagree)
Truffy Avatar
160 months ago
I still find it difficult to believe that Apple could get this into the product for a September announcement
Score: 8 Votes (Like | Disagree)