The DJIA-featured 3M Company announced it had reached an agreement with the Amsterdam-listed Gemalto (GTO), a digital security service provider, regarding the sale of 3Ms identity management business. The deal is estimated to $850 million.
3M shares closed lower for the first time in the past three trading sessions on Thursday. The stock edged down 0.10% ($0.17) to $175.88, after going up as high as $176.35 a share, or a level not seen since September 30th ($177.15). Shares have risen 2.00% so far during the current week and 2.42% since the start of December. In the week ended on December 4th the technology company lost 0.61% of its market value, following a 0.31% gain in the prior week. Novembers 3.90% advance marked the stocks best performance since June 2016.
“We believe that the identity management business will be better positioned with a company that is primarily focused on security solutions”, said John Riccardi, 3Ms vice president of traffic safety and security division, cited by Reuters.
Present on three continents, 3Ms identity management business encompasses 3M Cogent Inc., a provider of a full range of biometric solutions in civil identification, border control and law enforcement, as well as the Document Reader and Secure Materials Businesses of the NYSE-listed company. The unit generates global sales at the amount of $215 million per year, while its operating profit is valued at $58 million.
The deal, which is to be finalized during the first six months of 2017, would bring in a gain and incur various charges, according to 3Ms statement.
Once the acquisition is finalized, 3Ms identity management business will be a part of Gemaltos government programs business, which generated EUR 391 million in revenue during 2015, according to a statement by the Amsterdam-based provider.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the 3M stock are presented as follows:
R1 – $176.02
R2 – $176.17
R3 (Range Resistance – Sell) – $176.31
R4 (Long Breakout) – $176.74
R5 (Breakout Target 1) – $177.25
R6 (Breakout Target 2) – $177.46
S1 – $175.74
S2 – $175.59
S3 (Range Support – Buy) – $175.45
S4 (Short Breakout) – $175.02
S5 (Breakout Target 1) – $174.51
S6 (Breakout Target 2) – $174.30
By using the traditional method of calculation, the weekly levels of importance for 3M Company (MMM) are presented as follows:
Central Pivot Point – $172.55
R1 – $173.65
R2 – $174.87
R3 – $175.97
R4 – $177.07
S1 – $171.33
S2 – $170.23
S3 – $169.01
S4 – $167.79