Samsung Acquires Biometrics Firm Fingerprint Cards For $650M – Chasing Apple’s Touch ID Lead [Updated]

Update: After the press release announcing this acquisition went out Cision recalled it, saying it had been released in error. We’ve spoken to Samsung and are awaiting their confirmation. This is a developing story so please check for more updates. Original story follows below.

Apple’s iPhone 5s has a fingerprint sensor embedded in the home button. HTC is rumoured to be sticking a fingerprint sensor on the rear of the forthcoming HTC One Max. And now Samsung is next in line to add biometrics to its mobile hardware: the company has today announced it’s acquiring Swedish biometrics company Fingerprint Cards AB – which makes a range of fingerprint sensor modules — for $650 million in cash.

Samsung said today that the acquisition will ”increase the accessibility of swipe sensor technology”. The Korean mobile maker made no mention of Apple’s new flagship fingerprint sensor feature — Touch ID — but that’s the clear driver here.

At the launch of its new iPhone last month, the iPhone 5s, Apple replaced its flagship smartphone’s home button with a fingerprint sensor that allows users to unlock their phone with their fingerprint, and verify purchases on iTunes without having to input a password. As well as offering users the convenience of not having to keep inputting a passcode/password, Touch ID differentiates Apple’s flagship hardware from rivals — at least for the moment. It’s now a race for Samsung to launch Galaxy-branded devices with a own fingerprint sensor to neutralise Apple’s first mover advantage here.

“Swipe sensor technology is phenomenal in every way and are going to be loved by millions of people around the world,” said Samsung CEO Kwon Oh-hyun in a statement announcing the acquisition. “Together we will create the future.”

The acquisition tallies with earlier rumours that Samsung is planning to add a fingerprint sensor to the next generation of its Galaxy Note phablet.

The acquisition has been approved by both boards, and Fingerprint Cards will become a new business division within Samsung, the pair said today. Fingerprint Cards CEO Johan Carlström joins Samsung, becoming president of the Samsung Fingerprint Cards Division, and reporting directly to Kwon Oh-hyun.

Developing story. More to come. Full release follows below…

Fingerprint Cards AB and Samsung Electronics today announced that they have entered into a definitive agreement under which Samsung will acquire Fingerprint Cards, the leading fingerprint verification company, for $650 million in cash. The agreement has been approved by the boards of directors of both Fingerprint Cards and Samsung. The acquisition will increase the accessibility of swipe sensor technology. The combination will extend Fingerprint Cards world class technology.

Swipe sensor technology is phenomenal in every way and are going to be loved by millions of people around the world,” said Samsung CEO Kwon Oh-hyun. “Together we will create the future.

Fingerprint Cards will become a new business division within Samsung, and Fingerprint Cards CEO Johan Carlström will assume the title of president of the Samsung Fingerprint Cards Division, reporting directly to Kwon Oh-hyun.

Fingerprints Cards and Samsung share the vision of bringing products to our customers,” said Johan Carlström. “Together, we will be able to accelerate Samsung’s plans,” Johan Carlström said.

About Fingerprint Cards AB (publ)

Fingerprint Cards AB (FPC) markets, develops and produces biometric components and technologies that through the analysis and matching of an individual’s unique fingerprint verify the person’s identity. The technology consists of biometric sensors, processors, algorithms and modules that can be used separately or in combination with each other. The competitive advantages offered by the FPC’s technology include unique image quality, extreme robustness, low power consumption and complete biometric systems. With these advantages and the ability to achieve extremely low manufacturing costs, the technology can be implemented in volume products such as smart cards and mobile phones, where extremely rigorous demands are placed on such characteristics. The company’s technology can also be used in IT and Internet security, access control, etc.

Fingerprint Cards AB (publ) discloses this information pursuant to the Swedish Securities Market Act (2007:528) and the Swedish Financial Instruments Trading Act (1991:980). The information was issued for publication on October 11, 2013 at 10.00 CET.

Important information Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the constituent information in accordance with the rules and regulations prevailing in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any of the company’s securities in any jurisdiction.

Important information Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the constituent information in accordance with the rules and regulations prevailing in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any of the company’s securities in any jurisdiction.

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