AuthenTec, a Florida-based security, identity-management, and touch control provider with more than sixty million sensors in use worldwide, has recently merged with UPEK, a private fingerprint biometric company. 

AuthenTec’s smart sensor products and security solutions are used in PCs, mobile devices, and the cloud. Their TruePrint smart sensors, TrueSuite identity management software and TrueProtect embedded security products (formerly SafeNet Embedded Security Solutions), provide developers and users with safe connections to their digital applications. TrueSuite is only available as an embedded feature on select PC models.    

UPEK’s hardware and software are embedded into laptops from four of the world’s top five largest PC manufacturers. UPEK also implements its technology into USB flash drives, external hard disk drives, and mobile phones. UPEK also offers the only FIPS 201- approved (Federal Information Processing Standards Publication 201) silicon-based fingerprint sensor, and the company’s technologies are used in the healthcare, banking, education, and government markets.

AuthenTec’s headquarters will remain in Melbourne, Florida, and will be led by newly appointed CEO Larry Ciaccia, who was previously Authentec’s president and chief operating officer. Ciaccia brings with him thirty years of experience in the semiconductor and wireless industry.

From its 29.93 million shares from its common stock (valued each at $1.65 as of 13 September 2010), AuthenTec will relinquish 5.9 million shares to UPEK, as well as a promissory note for either $21.6 million or an additional 8 million shares. UPEK had $18 million in revenues last year and has made $11.7 million in the first half of 2010 (ending 30 June). The combined company estimates an excess of $10 million in cost synergies in 2011. 

According to an announcement by the combined company, AuthenTec will be expanding its intellectual property to nearly 200 issued and filed U.S. patents, “the largest patent portfolio in the industry today.”