Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

3M To Go For Acquisition of Cogent

|Includes: FLNT, 3M Company (MMM)


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.


The Views and Opinions Expressed by the author are his or her opinions only and do not necessarily reflect those of this Web-Site or its agents, affiliates, officers, directors, staff, or contractors. The author at the time of this article did not own any shares or receive any consideration financial or otherwise from any company or person mentioned or referred to in the article.


Disclaimer: Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. publisher and its affiliates and contractors are not registered investment advisers or broker/dealers. Our disclaimer is to be read and fully understood before using our site, reading our newsletter or joining our email list. Release of Liability: Through use of this website viewing or using, you agree to hold report and Crown Equity Holdings Inc. CRWE, its operators, shareholders, employees and/or contractors harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damages (monetary or otherwise) that you may occur. (Read more at Rule 17B requires disclosure of payment for investor relations. Crown Equity Holdings Inc. (OTCPK:CRWE) is a newswire as well as an IR and PR firm. Crown Equity Holdings Inc. (OTCPK:CRWE), in some cases, provides media advertising and public awareness for both public and private companies, as well as disseminating news. As such, in some cases, when Crown Equity Holdings Inc. (OTCPK:CRWE) advertises for a particular client, Crown Equity Holdings Inc. (OTCPK:CRWE) charges an advertising fee which it must disclose under 17B. The fee may be in cash, in free trading stock or in restricted stock. Crown Equity Holdings Inc. (OTCPK:CRWE), if paid in stock, can and may sell those securities during the advertising period.


Disclosure: MMM, COGT