Apple Won’t Meddle with AuthenTec Clients

Apple (NASDAQ:AAPL) is clearly sharpening its focus regarding acquisition target AuthenTec (NASDAQ:AUTH), with the mobile security solutions firm shedding a part of its business in order to suit the iPhone maker better. AuthenTec, which Apple made a successful acquisition offer for in July, has sold its division that supplies embedded security solutions and encryption algorithms to companies like LG, Google (NASDAQ:GOOG) unit Motorola, Samsung, and Nokia (NASDAQ:NOK). The division was sold for $48 million to French firm Inside Secure.

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The breakup proves that Apple is more interested in AuthenTec’s other products, including tools for fingerprint sensors and identity management using near-field communications, as well as its patent portfolio. While Apple has not yet expressed an interest in adding NFC technology to its devices and instead recently launched a barcode-based system through its Passbook app, it may be inching toward fingerprint sensors for contactless payments.

After the news of the acquisition spread, it was speculated that Apple may stop AuthenTec from continuing to supply its embedded security technology to other manufacturers, many of whom are direct rivals of the iPhone maker. However, the latest sale ensures that Apple will have no control over that aspect of the business.

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