3M announced it will buy Cogent Inc., the Pasadena maker of security identification systems founded by Los Angeles billionaire Ming Hsieh, for nearly $950 million.
The St. Paul, Minn.-based conglomerate will pay $10.50 a share, an 18 percent premium above the stock’s closing on Friday. The announcement sent shares of Cogent 20 percent higher in Monday trading.
Cogent provides security identification systems using an individual’s fingerprints, facial characteristics or iris. The company had revenue of $130 million last year.
Cogent’s board unanimously recommended that shareholders accept the offer, which totals $943 million. Hsieh, whom the Business Journal ranked at No. 50 on its Wealthiest Angelenos list in May based on his Cogent holdings, owns 39 percent of the company. He will receive roughly $370 million based on the offer price.
After the acquisition, Cogent will become part of 3M’s Security Systems Division. Hsieh “will remain an integral part of the combined business going forward,” the company said in a statement.
The Cogent acquisition “expands our reach into access control and other commercial ID and authentication applications,” said Mike Delkoski, general manager of 3M Security Systems, in the statement.
Shares of Cogent were trading at $10.67 in early afternoon trading on the Nasdaq.
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