Apple has decided to get rid of some of their cash through their second largest acquisition.
The iPhone maker has agreed to acquire AuthenTec, a mobile security company, for $356 million in cash, according to a filing.
Security is also becoming a critical issue for Apple, as the company plays a bigger role in the workplace. As more businesses buy iPhones and iPads for their employees, more are also seeking solutions to protect their devices.
Do you think this is a good deal and will add value to Apple? Are cash acquisitions always better the stock/cash transactions?
Check out the article here: http://dealbook.nytimes.com/2012/07/27/apple-to-a…
I mean, that's almost a rounding error on the amount of cash they have so they can't really lose. It seems like another patent grab which is what the tech wars are turning into right now. Security, though, is absolutely a primary concern going forwards especially with NFC technology beginning to come to the forefront for payments etc.
its about time they did something with all that cash
I would say this is more important for RIMM than for AAPL. The Blackberry is trusted because of its strong and safe network. I think AAPL wants more professional handset penetration, but that might happen either way.
AuthenTec specializes in fingerprint technology, and with Apples reputation of outstanding security with their devices like the ipad and iphone to uphold, this is a good acquisition to keep this reputation going. This will also leave Apple's competitors/ AuthenTec's (past) clients Motorola, Nokia and Samsung without its services. All in all with over 117 billion in cash, 356 mil is pocket change for a powerhouse like Apple.
Did I hear correctly on Bloomberg that Samsung may try and outbid Apple?
You heard correct, According to Friday’s filling, if AuthenTec opts for a superior bid from a rival company, it will pay Apple $10.95 million. However, if the deal does not close because of antitrust issues, Apple will pay AuthenTec $20 million.
Are you sure Apple actually meant to buy it, or maybe it was just walking down the street and it farted a little and $350 mm fell out so AuthenTec thought it was bought?
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