The Company
A spinout from Harris Corporation (NYSE: HRS), AuthenTec was a leading provider of fingerprint sensors and identity management software targeting the high-volume PC, wireless device, and access control markets. AuthenTec was the first public company ever acquired by Apple and their second largest acquisition to date. AuthenTec’s fingerprint sensors are now the technology behind the Touch ID home button first introduced on the iPhone 5S. AuthenTec completed an initial public offering in 2007 (NASDAQ: AUTH) and was sold to Apple, Inc. in 2012.
The Partnership
Topmark was attracted to the proprietary technology that was developed and funded by Harris Corporation that greatly reduced the cost and risk that is typical in an early stage technology company. The team that developed the technology at Harris, including co-founder Scott Moody, led the spinoff that was differentiated in an industry poised for rapid expansion. Topmark played a key role in the Series A financing by identifying a key investor for the syndicate and collaborating with management on key deal points with Harris Corporation. Following the investment, Topmark played an active and collaborative role as a board member and later as an observer.
Topmark invested in AuthenTec through a legacy fund and exited its investment 2007 though the sale of shares after Authentec’s initial public offering.