AuthenTec, a provider of security, identity management and touch control solutions, and UPEK, a leading supplier of fingerprint solutions for consumer, business and government applications, announced that the companies have combined, creating the 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 COO.
"The combination of AuthenTec and UPEK creates the 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," Ciaccia said.
"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 Ronald Black, Chairman and CEO, UPEK.
UPEK had 2009 revenue of US$18.0 million and $11.7 million in revenue (unaudited) in the first half of 2010 (ending June 30, 2010). The combined company is expected to generate in excess of $10.0 million in cost synergies in 2011. The transaction, on a non-GAAP basis, is expected to be accretive to AuthenTec's earnings per share by the second quarter of 2011, and the combined company expects to be profitable, on a non-GAAP basis, by the third quarter of 2011.
AuthenTec also announced that Larry Ciaccia has been appointed CEO of the newly combined company. Ciaccia has also become a member of AuthenTec's Board of Directors. Scott Moody, Co-founder of the company and CEO since its inception, will continue as a member of the Board of Directors. Additionally, AuthenTec appointed Philip Calamia as Interim CFO, effective immediately. Calamia has more than 20 years of CFO experience and financial expertise, and is a Managing Partner in the consultancy firm CFO Navigator.