3M buys Attenti for $230m

The Tel Aviv based company, formerly Dmatek, develops and manufactures electronic ankle bracelets to monitor a person's whereabouts.

3M Corporation (NYSE: MMM) will acquire Tel Aviv-based Attenti Holdings SA for $230 million in cash, from an investor group led by Francisco Partners. Attenti Holdings was formally Dmatek Ltd., which was traded on the London Stock Exchange, before its acquisition in 2009 by Francisco Partners, Cavendish Asset Management, Sequoia Capital and CEO Yoav Reisman for $80 million. The company develops and manufactures remote people monitoring technologies, in other words, electronic ankle bracelets. The acquisition should be closed in the fourth quarter.

The company's products can be used to monitor a person's whereabouts, such as parolees or people with Alzheimer's disease.

Attenti has 340 employees in Tel Aviv, at three sites in the US at Tampa, Milwaukee and Naperville in Illinois, and at Sydney, Australia, and Plovdiv in Bulgaria. The company estimates that its sales will reach $100 million this year.

The company's customers include private companies and public organizations, monitoring service providers, security and telecommunications companies, as well as government agencies in over 25 countries worldwide.

Attenti CEO Yoav Reisman said, "This is an exciting opportunity to continue growing our business within the framework of a renowned global leader and innovator which recognizes the value of our unique market position and product portfolio. 3M’s culture of innovation fits well with our own and its R&D capabilities and global reach will help accelerate the growth of our business."

3M Track and Trace Solutions general manager Rory Yanchek said, "This acquisition will position our track and trace business as a leader in the high growth electronic offender monitoring market and add Global Positioning System (GPS) and active radio frequency (RF) technology and capability to our portfolio. The addition of Attenti’s location tracking capability enhances the value we can deliver to our customers around the world."

3M Israel managing director Nir Leshem said, “For 3M Israel, this acquisition will strengthen our presence and contribute to growth in our local market."

Published by Globes [online], Israel business news - www.globes-online.com - on August 31, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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