3M to buy security firm Cogent for $943 million - Cogent

Multinational conglomerate 3M has offered to buy security firm Cogent Systems for $943 million.

The all-cash deal was announced today and is aimed at expanding 3M's ID card offering. One of Cogent's key products is its Automated Palmprint and Fingerprint Identification System (APFIS), which is employed by governments throughout the world. With both India and the UK to join the ID card list, 3M could secure some prosperous contracts.

Cogent also offers a number of enterprise security services, which 3M will add to its authentication systems business. 3M revealed its aim is to target the government, law enforcement and commercial sectors.

3M will pay $10.50 per Cogent share for a total of $943 million. Both companies confirmed that a $500 million rebate will be included, however, due to Cogent cash reserves, making the actual cost around $450 million.

Both companies' board of directors have green-lighted the deal, but Cogent's share-holders must also approve it before the transaction can take place.

California-based Cogent was established in 1990 and focuses on biometric identification systems. Throughout the years it has grown considerably, raking in roughly $130 million last year alone, making it an attractive acquisition for 3M.

The deal is expected to be complete by the end of the year.