Reported by: Eric, CRWE Newswire Middle East Correspondent
3M Co. had entered in an agreement to acquire Cogent Inc for $943 million. According to terms and conditions of the agreement 3M will pay $10.50 per share which is 18 percent premium on Friday’s closing market price of Cogent Inc.
Further Cogent’s outstanding shares have to be offered through a tender for buyout as per the agreement between two companies. Ming Hsieh Cogent founder and chief executive officer has already agreed to offer his 38 percent of stake in tender favoring buyout.
3M’s management is excited about the acquisition of Cogent as they are looking for huge expansion in access control and commercial ID application’s industry.
3M Co maintains high reserves of cash in its balance sheet which also goes in favor of the latest acquisition as the 3M will have to produce $430 million more for the payment to Cogent Inc. 3M reported the surge of 43 percent in its second quarter sales as compared to same period last year whereas Cogent Inc.’s revenue dropped by 20 percent and its net profit declined 68 percent due to higher cost and direct expenses.Cogent, Inc.’s (NASDAQ:COGT) share price reported the gain of 24.4 percent to close at $11.09 with volume of 19.46 million shares whereas 3M Company (NYSE:MMM) saw the correction of 1.67 percent to close at $79.65 with total volume of 2.41 million shares for the day.
3M Company, together with its subsidiaries, operates as a diversified technology company worldwide. It operates in six segments: Industrial and Transportation; Health Care; Consumer and Office; Safety, Security and Protection Services; Display and Graphics; and Electro and Communications.
Cogent, Inc. provides automated fingerprint identification systems (AFIS) and other fingerprint biometrics solutions to governments, law enforcement agencies, and other organizations worldwide. Its AFIS solutions enable customers to capture fingerprint images electronically, encode fingerprints into searchable files, and compare a set of fingerprints to a database of fingerprints.
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Disclosure: MMM, COGT