AuthenTec and UPEK announce merger

MELBOURNE & EMERYVILLE, USA: AuthenTec, a leading provider of security, identity management and touch control solutions, and privately-held UPEK, a leading supplier of fingerprint solutions for consumer, business and government applications, announced that the companies have combined, creating the world’s largest provider of fingerprint sensors and identity management software, as well as biometric and embedded security solutions.

AuthenTec will remain headquartered in Melbourne, Florida and will be led by newly named CEO Larry Ciaccia, who previously served as AuthenTec’s president and CEO.

Positioned for profitability and growth
This merger establishes AuthenTec as the industry leader with significantly greater scale, an increased customer footprint and broader market diversity, thereby enhancing opportunities for future revenue growth and profitability.

The combined company will benefit from AuthenTec’s leadership position in the PC and wireless markets as well as in embedded security, and from UPEK’s software expertise, presence in the PC and wireless markets and leadership in government biometrics. AuthenTec will now be able to provide customers a broader portfolio of smart sensor hardware and identity management software as well as embedded security solutions.

“The combination of AuthenTec and UPEK creates the leading provider of security, identity management and touch control solutions with the scale and customer diversity to accelerate the achievement of our growth and profit objectives,” said Larry Ciaccia.

“Together, we are able to achieve enhanced profitability through synergistic cost reductions, gain depth and expertise as an expanded global team advancing our technology and product roadmaps, and add to an unmatched patent portfolio. By combining with UPEK, we gain a team with a proven track record in biometrics, a large installed base for its Protector Suite software application, a higher margin government biometric business, and a leading position with a top five PC OEM. We are confident that this merger represents the best interests of our combined base of global customers, employees and shareholders.”

“The UPEK team is very pleased to join AuthenTec and together continue to build on our leadership in identity management technologies for commercial, consumer and government markets,” said UPEK Chairman and CEO Dr. Ronald Black.

“AuthenTec will now have expanded opportunities in government and PC markets as well as enhanced biometric software expertise and complementary fingerprint sensor/security technology. The result is a market leader with higher revenue, a more diverse product offering, greater market and customer diversity, and an expanded patent portfolio.”