3M Shares Dip On News Of Cogent Purchase

3M (NYSE: MMM) announced on Monday that it has agreed to buy Cogent (NYSE: COGT) for $10.50 per share. The price represents an 18% premium to COGT’s closing price on Friday.

The total deal for the biometric security systems company is valued at $943 million, or $430 net of cash acquired. Cogent's board of directors has approved the deal. The terms of the deal include a subsidiary of MMM to initiate a tender offer to purchase all outstanding shares of Cogent within ten business days. The acquisition is expected to be completed in the fourth quarter.

While shares of COGT skyrocketed 22.04% to $10.88 at 1:55pm, those of MMM slid 1.30% to $79.95.