SENSITIVE OBJECT, FRENCH TOUCH SCREEN TECHNOLOGY STARTUP, SOLD TO TYCO FOR $62 MILLION

Sensitive Object SA, a maker of touch-screen technology for electronics, has been acquired by Tyco Electronics Ltd. for $62 million, giving majority shareholder Sofinnova Partners an internal rate of return of between 30% and 40%, the firm said. Sofinnova held about 70% of Sensitive Object after investing about EUR10 million in the company since 2004, according to Jean Schmitt, a managing partner at the Paris-based investor and a Sensitive Object board member. Sofinnova was the only venture firm to invest in Sensitive Object until Motorola Ventures joined the final financing round late last year.

Sensitive Object touch screens It's the latest exit for Sofinnova, which in the past year has sold CoreValve Inc. for $700 million cash plus milestones, Fovea Pharmaceuticals SA for up to EUR370 million and Novexel SA for up to $505 million in cash and milestones, in addition to an EUR85 million initial public offering for Movetis NV. Sensitive Object needed more funding to expand its technology and reach, Schmitt said. Sensitive Object touch control panels "The technology they have is incredibly versatile," Schmitt said. "You can turn anything to be touch-sensitive. That level of versatility requires a lot of investment and significant know-how in user interfaces. To create that within Sensitive Object would cost tens of millions." Sofinnova decided to sell rather than try to raise more venture funding, which would require seeking a much higher sale price. "It's a great return...We had to make a difficult choice between raising more money and selling right now," Schmitt said. "If you do the math, if you raise EUR20 million more, you get seriously diluted, even if you also invest. So to get the same amount of money in return, you need to sell for twice as much." Tyco and Sensitive Object had been working together for a year and a half, and remained interested in working together, so the decision was not just about generating a high return, Schmitt added. Sensitive Object was founded in 2003 as a spin-off from the French Public Center of Research. The company's technology can essentially make any surface touch-sensitive. Using acoustics, the technology can "hear" a finger or stylus touch the device and determine where exactly it has been touched. With interest high in Apple Inc.'s iPhone and new iPad, the technology can be used on a variety of devices from personal computers to washing machines. It's the latest exit for Sofinnova, which held 70% of the company after putting in EUR10 million. COMMENTARY:  Sensitive Object SA, founded in October 2003, is a spin-off from the French Science National Research Centre (CNRS).  In August 2004, Sofinnova Partners became an investor in Sensitive Object. Sensitive Object provides a new Acoustic Touch Technology that will revolutionize the usage of many products such as Computers, internet Devices, Mobile Phones, Multimedia, Home Appliances, Home Automation, Transportations, and beyond. The Acoustic Touch Solution is software-based and features high configuration flexibility and opening doors for new design and concepts, for any solid surface and shape (glass, plastic, metal, wood, gypsum walls, ¡K) I had a look into Sensitive Object SA, and the company has developed two proprietary touchscreen technologies: ReverSys - ReverSys® is based on the recognition of sound waves propagating in an object when the user touches it. A Touch on an object produces a pattern of sound waves through the material. This pattern creates an acoustic signature that is unique to the location of the impact. This property was discovered through the study of a process known as Time Reversal Acoustics, which can be used to precisely identify the source of radiated waves. We use acoustic sensors linked to a computer or a DSP board to capture the audio vibrations within an object and generate the acoustic signatures.ddk 4Sensors - Solutions for large touch zones on large surface. The 4 Sensors solution enables large zones on large solid surface of any kind of materials, allowing reconfigurable virtual buttons.  The technology uses 4 piezo electric sensors to pick-up acoustic bending waves generated by Touch. Sensitive Object's offers two product lines, touch control panels and touch screens.   The touch control panels can be mounted on a wall like the security alarm panels you find in many buildings.  The touch screens are designed for large touch zones on large surfaces. Looks like Sofinnova Partners made out pretty good selling its EURO10 million investment to Tyco, a company whose former CEO and Chairman is now serving prison time for tax evasion and other corporate sins.  Just thought I would throw that in.