This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3M To Acquire Cogent For About $943 Million

BARBARA ORTUTAY

NEW YORK (AP) â¿¿ 3M Co., the conglomerate whose products range from Post-Its to respirators, computer arms and films for LCD TV screens, is trying to expand into the security market by buying Cogent Inc. for about $943 million.

Cogent develops automated systems that read finger and palm prints, and it makes iris and face recognition systems used by government, law enforcement and border patrol agencies.

Cogent's board of directors already has agreed to the deal and is recommending that shareholders accept it. 3M said Monday it will pay $10.50 per share for Cogent, or nearly 18 percent above Cogent's closing price on Friday.

Shares of Cogent, which is based in Pasadena, Calif., rose $1.75, or 19.6 percent, to $10.66 â¿¿ slightly above the offered price â¿¿ in morning trading Monday.

3M already operates a division for identification and authentication systems. Ming Hsieh, Cogent's founder and CEO, said the acquisition would help 3M compete in border control and law enforcement markets.

"Together, we'll deliver a broader range of identification and authentication solutions to the security industry and to our customers," Hsieh said in a statement.

Nicholas P. Heymann, an analyst with Sterne Agee, said Cogent would complement 3M's existing business of making border-management products such as passports, visas and document readers and laminates.

As smart phones begin to replace credit cards as methods of payment, Heymann said Cogent should help put 3M supply biometric security authorization products â¿¿ that is, systems that use characteristics such as palm prints or the eyes to identify people.

3M's tender offer for Cogent is expected to last 10 days. The acquisition is expected to close by year's end. Once completed, the deal should result in a charge of 9 cents to 10 cents per share during the next 12 months.

But 3M said it also expects the acquisition to boost its earnings by 1 cents to 2 cents per share over the same period, excluding accounting adjustments and integration expenses.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs