3M’s identity management business is a leader in identity management solutions providing biometric hardware and software that enable identity verification and authentication, as well as secure materials and document readers. The business includes 3M Cogent, Inc., a wholly owned subsidiary of 3M, which provides a full spectrum of biometric solutions with a focus in law enforcement, border control and civil identification.

Headquartered in the United States and present on 3 continents, 3M's Identity Management Business is a trusted partner to governments, law enforcement, border control and civil identification bodies worldwide. It offers world-class biometric based end-to-end solutions enabling identity verification and user-friendly authentication. 3M's Identity Management experienced and highly-skilled team of approximately 450 experts has developed proven biometrics algorithms (finger, face, iris, etc.) and is at the forefront of innovation with the latest multi-modal biometric solutions. Annual revenue of the business is approximately US$215M.

“After completing a thorough strategic review, we believe that the identity management business will be better positioned with a company that is primarily focused on security solutions,” said John Riccardi, vice president and general manager, Traffic Safety and Security Division, which is part of 3M’s Safety & Graphics Business. “I want to thank our employees for their outstanding contributions to our business.”

The transaction is expected to close during the first half of 2017 and is subject to customary closing conditions, regulatory approvals and consultation or information requirements with relevant works councils. Once the acquisition is completed, 3M's Identity Management Business will become part of Gemalto Government Programs business which recorded a revenue of €391 million in 2015 and approximately 450 3M employees are expected to transfer to Gemalto. This acquisition is expected to both complete Gemalto Government Programs offer by in-sourcing biometric technology and ideally position the company to provide solutions for the promising commercial biometrics market.

"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", said Philippe Vallée, Gemalto CEO.

Upon completion of the sale, 3M will record a gain related to the transaction, and in addition, will incur various charges as it continues to make investments to drive growth and improve productivity.

Goldman, Sachs & Co. acted as the exclusive financial advisor to 3M.