3M to sell identity management unit to Gemalto for $850 mn
09 December 2016
3M, the maker of post-it products and scotch office tapes, yesterday struck a deal to sell its identity management business within its Traffic Safety and Security Division to Dutch digital security company Gemalto for $850 million.
3M's identity management business provides identity management solutions including biometric hardware and software that enable identity verification and authentication, as well as secure materials and document readers.
The business includes 3M Cogent, Inc., a wholly-owned subsidiary of 3M, which provides a full spectrum of biometric solutions with a focus in law enforcement, border control and civil identification.
The business has annual global sales of approximately $215 million.
''After completing a thorough strategic review, we believe that the identity management business will be better positioned with a company that is primarily focused on security solutions,'' said John Riccardi, vice president and general manager, Traffic Safety and Security Division, which is part of 3M's Safety & Graphics Business.
Minnesota-based 3M said that the transaction is expected to close during the first half of 2017 and is subject to customary closing conditions, regulatory approvals.
Approximately 450 3M employees are expected to transfer to Gemalto with the acquisition.
Formed through the 2006 merger between Axalto and Gemplus International, Gemalto is a digital security company providing software applications, secure personal devices such as smart cards and tokens, and managed services.
The Euronext Amsterdam and Euronext Paris-listed company is the world's largest manufacturer of SIM cards and has annual sales of €3.122 billion.