Manufacturing giant 3M (NYSE:MMM) shelled out nearly $1 billion on Monday to snatch biometric identification systems maker Cogent (NASDAQ:COGT) at a premium of almost 18%.

Headquartered in South Pasadena, Calif., Cogent makes finger, palm, face and iris biometric systems used by governments, law enforcement agencies and companies.

St. Paul, Minn.-based 3M said it will acquire Cogent for $10.50 a share, valuing the company at $943 million, or $430 million net of cash acquired.

3M said it sees the deal closing in the fourth quarter and cutting its EPS by 9 cents to 10 cents in the first 12 months. However, 3M expects the deal to boost its non-GAAP EPS by 1 cent to 2 cents over that span.

The acquisition will boost 3M’s presence in the $4 billion global biometric market, which the company said is projected to grow at a rate of at least 20% a year.

“Cogent Systems has done a tremendous job establishing a strong presence in the biometric industry,” Mike Delkoski, vice president and general manager of 3M’s Security Systems division, said in a statement. “Adding Cogent Systems’ products to our business strengthens our product portfolio and services in high security credential issuance and authentication systems and positions 3M’s business in law enforcement applications. It also expands our reach into access control and other commercial ID and authentication applications.”

3M already offers a number of identification and authentication products, including border management products, document manufacturing and issuance systems for IDS and document readers.

“3M can accelerate our growth and extend our reach in global border control markets, law enforcement and commercial applications,” said Ming Hsieh, founder and CEO of Cogent “Together, we’ll deliver a broader range of identification and authentication solutions to the security industry and to our customers.”

Cogent’s stock surged 20.5% to $10.74 Monday. 3M’s shares had a muted reaction to the transaction, easing 0.3% to $80.80.