3M to acquire fingerprint-identification company Cogent in a $943 million deal
31 Aug 2010
3M Co, the $23-billion turnover company that is known for making Post-it sticker pads, yesterday enterd into a deal to acquire Cogent Inc, a manufacturer of fingerprint-identification systems, in a deal valued at $943 million.
3M, based in St. Paul, Minnesota, is offering $10.50 a share, a premium of 18 per cent to Cogent's closing price on 27 August. The proposed transaction has a value of approximately $943 million, or approximately $430 million net of cash acquired.
Cogent founder and CEO Ming Hsieh, who hold nearly 38 per cent stake in the company, has agreed to tender his stake, and is expected to remain an "integral part" of the company.
California-based Cogent is a global biometric identification solutions provider to governments, law enforcement agencies, and commercial enterprises. Cogent provides identification systems, products and services with leading technology, accuracy and speed.
Cogent's Automated Fingerprint / Palmprint Identification Systems, or AFIS, enable customers to capture fingerprint and palm print images electronically, encode prints into searchable files, and accurately compare a set of fingerprints / palm prints to a database containing potentially millions of prints in seconds.
With 2009 revenues of approximately $130 million, the company has operations in Ohio and Virginia, as well as in Austria, Canada, China, and the UK, and employs about 500 people.
