UPDATE 2-L-1 Identity nears sale; deal seen at about $1 bln

* Co gets bids from US, foreign players

* To announce sale in coming weeks

* Analysts say company could be sold in parts
(Adds details; analyst comment on potential buyers and price)

BANGALORE, Aug 19 (BestGrowthStock) – Biometric identity systems
maker L-1 Identity Solutions Inc (ID.N: ) said it received
several offers and was close to finalizing a deal, months after
it put itself up for sale.

L-1 said it would announce a deal, which analysts said
could be around the $1 billion mark, in the coming weeks.

The company put itself up for sale in February amid renewed
interest from the Obama administration in surveillance and
intelligence technologies, a move that triggered a wave of
consolidation as larger companies moved in to scoop up firms
specializing in such niche technologies. [ID:nSGE6200EY]

Analysts said the company, which has a market value of $862
million, has attracted buyers from different end markets and
geographies and that it could be sold off in parts.

Morgan Keegan & Co analyst Brian Ruttenbur said diversified
U.S. manufacturer 3M (MMM.N: ), which makes products ranging from
Post-It notes to films used in flat-panel televisions, and
French conglomerate Safran’s (SAF.PA: ) Sagem unit were
interested in buying the biometric and credential units of L-1.

Ruttenbur said the company could be acquired for $10-$12 a
share in a best-case scenario. Such a deal would value the
company at $931.3 million to $1.12 billion.

The company’s finger and iris recognition biometric devices
are increasingly being used by U.S. homeland security agencies
as they counter an increased threat of terror attacks.

RBC Capital Markets analyst Daniel Meron said homeland
security firms, defense companies and major IT system
integrators could be interested in L-1.

The company, formed in 2006 through the merger of Viisage
and Identix, combines face and other biometric recognition
technologies with credentialing and access control systems for
protecting identity.

Its products are used by government agencies for improving
homeland security and border management and commercially at
financial institutions. L-1 also has an enrollment and
government consulting business.

In recent deals in the sector, defense manufacturer Argon
ST was acquired by Boeing (BA.N: ) for $775 million, while ICx
Technologies (ICXT.O: ) agreed to be bought out by FLIR Systems
(FLIR.O: ) for about $274 million.

L-1 shares, which have risen 22 percent in the past three
months, were up as much as 4 percent to $9.59 Thursday on the
New York Stock Exchange.
(Reporting by A.Ananthalakshmi in Bangalore; Editing by Don
Sebastian and Saumyadeb Chakrabarty)

UPDATE 2-L-1 Identity nears sale; deal seen at about $1 bln