December 9, 2016 / 12:43 AM / 3 years ago

3M to sell identity management business to Gemalto

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

(Reuters) - 3M Co (MMM.N), 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 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

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