3M to sell identity management business to Gemalto

Thu Dec 8, 2016 8:49pm EST
 
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(Reuters) - 3M Co (MMM.N: Quote), the maker of Scotch tape and Post-it notes, said it had entered into agreements to sell its identity management business to Amsterdam-based digital security company Gemalto (GTO.AS: Quote) for $850 million.

The unit, which provides biometric solutions used in law enforcement, border control and civil identification, has annual global sales of about $215 million.

"We believe that the identity management business will be better positioned with a company that is primarily focused on security solutions," the company's vice president of traffic safety and security division, John Riccardi, said in a statement.

Minnesota-based 3M said it would record a gain related to the deal, and incur various charges after the sale is completed.

3M said the deal was expected to close during the first half of 2017.

Goldman Sachs & Co is the exclusive financial adviser to 3M.

(Reporting by Akankshita Mukhopadhyay in Bengaluru; Editing by Peter Cooney)

 
The logo of Down Jones Industrial Average stock market index listed company 3M is shown in Irvine, California April 13, 2016.  REUTERS/Mike Blake/File Photo