ST. PAUL, Minn.--(BUSINESS WIRE)--3M announced today that it has entered into agreements to sell the
identity management business within its Traffic Safety and Security
Division, to Gemalto, the world leader in digital security, for $850
million, subject to closing and other adjustments.
3M’s identity management business is a leader in identity management
solutions providing 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. 3M’s identity management 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. “I want to
thank our employees for their outstanding contributions to our business.”
The transaction is expected to close during the first half of 2017 and
is subject to customary closing conditions, regulatory approvals and
consultation or information requirements with relevant works councils.
Approximately 450 3M employees are expected to transfer to Gemalto with
Upon completion of the sale, 3M will record a gain related to the
transaction, and in addition, will incur various charges as it continues
to make investments to drive growth and improve productivity.
Goldman, Sachs & Co. acted as the exclusive financial advisor to 3M.
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