3M buying maker of products used to track people

Aug 31, 2010 By SAMANTHA BOMKAMP , AP Business Writer

(AP) -- Manufacturing conglomerate 3M Co. said Tuesday it has agreed to pay $230 million in cash for an Israeli company that makes ankle bracelets and other products used to keep track of people.

The deal marks the second technology company purchase in two days for 3M, which is increasingly stepping away from its Post-It and Scotch Tape roots in favor of technology that's allowed it to increase its business at a faster pace out of the recession.

The Israeli company, Attenti Holdings SA, makes products like ankle bracelets that use global positioning system and radio frequency technology to track, for example, the movements of people awaiting trial, those on probation and patients in senior care centers.

3M already makes a range of products such as document readers and verification systems as well as tools that can be used for locating buried power lines or tracking inventory.

The deal is expected to close in the fourth quarter pending regulatory and other approvals. 3M expects the deal to boost earnings slightly within the first year after the acquisition closes.

Attenti has about 340 employees at locations in Israel, Australia, Bulgaria and the United States. Full-year sales are expected to be about $100 million.

The deal comes a day after 3M, which is based in Maplewood, Minn., said it will pay $943 million for Cogent Inc., which develops systems that read finger and palm prints and makes iris and face recognition systems. That deal is also expected to close by year's end.

3M's electronics and communications segment showed the most growth among the company's six business units in the latest quarter. The segment's operating income more than doubled while revenue jumped 31.6 percent to $726 million.

Overall, 3M's second-quarter profit jumped 43 percent to $1.12 billion. Revenue rose to $6.73 billion from $5.72 billion a year earlier.

Its shares fell 48 cents to $79.17 in midday trading Tuesday.

Explore further: Airbnb rental site raises $450 mn

not rated yet
add to favorites email to friend print save as pdf

Related Stories

3M to acquire Cogent for about $943 million

Aug 30, 2010

(AP) -- 3M Co., the conglomerate whose products range from Post-Its to respirators, computer arms and films for LCD TV screens, is trying to expand into the security market by buying Cogent Inc. for about ...

Motorola posts profit, strong sales; stock jumps

Apr 29, 2010

(AP) -- Motorola Inc. posted an unexpected profit in the first quarter, as sales of its new phones outdid its own forecasts. It also gave an outlook that was brighter than Wall Street was predicting, and ...

Research In Motion's 1Q profit jumps 20 percent

Jun 24, 2010

(AP) -- BlackBerry maker Research In Motion Ltd. posted a 20 percent jump in net income for the most recent quarter, but the company's revenue and subscriber growth disappointed investors.

Cisco expands again, buying Starent for $2.9B

Oct 13, 2009

(AP) -- Betting on the growing popularity of data-hungry phones like the iPhone, Cisco Systems Inc. said Tuesday it had agreed to pay $2.9 billion for Starent Networks Corp., a maker of equipment for wireless ...

Recommended for you

Airbnb rental site raises $450 mn

9 hours ago

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

US venture investments highest since 2001 (Update)

Apr 18, 2014

Funding for U.S. startup companies soared 57 percent in the first quarter to a level not seen since 2001, as venture capitalists piled more money into a growing number of deals, according to a report due out Friday.

User comments : 0

More news stories

Airbnb rental site raises $450 mn

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

Health care site flagged in Heartbleed review

People with accounts on the enrollment website for President Barack Obama's signature health care law are being told to change their passwords following an administration-wide review of the government's vulnerability to the ...