Gemalto targets 3M’s Identity Management Business
At a value of $850m, the acquisition will include 3M Cogent Inc., and the firm’s Document Reader and Secure Materials businesses.
Gemalto, a global digital security specialist, has announced plans for the acquisition of 3M's Identity Management Business.
As part of an $850m deal, the acquisition will reportedly strengthen Gemalto Government Programs business with biometric technology, which reported a revenue of approximately $413m in 2015. The company is also expected to increase its competitiveness within the commercial biometrics market, where it aims to tackle threats towards online and mobile transactions, by delivering new forms of multi-factor authentication and identification.
Furthermore, the agreement will see Gemalto acquire 3M Cogent Inc, which comprises of biometric solutions around civil identification, as well as the company's Document Reader and Secure Materials businesses.
Commenting on the acquisition, Philippe Vallée, Gemalto CEO, shared: "Gemalto is delighted to welcome new members to its international team. 3M's Identity Management Business and Gemalto perfectly fit, solving authentication and identity management pain points across our customer segments, creating immediate increased differentiation and offering additional long term growth perspectives."
Utilised across three continents, 3M's Identity Management Business is utilised by governments, law enforcement agencies, civil identification authorities, as well as border control centres. In June 2015, the business reportedly produced approximately $215m in annual revenue, along with $58m in profits from operations.
The acquisition, which will be accredited to adjusted Earnings per Share from the first year on pro-forma basis, is expected to conclude in the first half of 2017.