France-based chip supplier Inside Secure has agreed to acquire the Embedded Security Solutions unit of U.S.-based AuthenTec, which designs software and hardware products used for digital rights management, virtual private networks and other network security.
Inside hopes the acquisition–for a cash price of up to US$48 million—will help it broaden its customer base and provide a steady stream of licensing and royalty revenue, while also making Inside's new secure element chips for NFC devices more attractive to customers.
Apple is acquiring AuthenTec for a reported $356 million, and the Inside acquisition makes it clear that Apple is not buying AuthenTec for its embedded security products but for its fingerprint sensor products, which are part of AuthenTec’s Smart Sensor Solutions segment. A filing by AuthenTec with the U.S. Securities and Exchange Commission in August confirmed the planned July 26 acquisition by Apple, which would close before the end of the year.
