Apple Inc the maker of iPhone and iPad tablet computers today agreed to buy AuthenTec Inc, for about $356 million, in order to gain fingerprint-authentication technology.
Apple has offered to pay $8 per share, a premium of 58 per cent over AuthenTec's yesterday closing price.
Under the deal, Apple will pay $20 million for rights to certain patents and then has an option to pay as much as $115 million for other patents it chooses.
AuthenTec would pay Apple a breakup fee of $10.95 million if it accepts a superior proposal and Apple would pay $20 million if the deal does not close because of antitrust issues.
Although Apple has not revealed the acquisition, Melbourne, Florida-based Authentec disclosed the deal in a filing with the US Securities and Exchange Commission.
With clients that include Alcatel-Lucent, Cisco, Fujitsu, HBO, HP, Lenovo, LG, Motorola, Nokia, Orange, Samsung, Sky, and Texas Instruments, AuthenTec is a leading provider of mobile and network security.