GE Infrastructure, a unit of General Electric Company, and InVision Technologies, has announced that, subject to regulatory approval, GE has agreed to acquire InVision, a high technology provider of infrastructure security systems in an all-cash transaction valued at approximately US$900 million. This acquisition significantly enhances GE's capabilities in explosive detection and security technologies.
"Strategically, InVision is a perfect fit for GE Infrastructure's security business," said GE Chairman and CEO Jeff Immelt. "It can enhance our broad strength in technology and service. Financially, we have substantial revenue and operating synergies with InVision and this deal will be accretive to earnings in 2004. Executing on strategic growth platforms like Amersham, Vivendi-Universal Entertainment and InVision makes us feel even better about 2005 and beyond.
"Our industrial growth platforms, including security, are growing revenues more than 20% over last year, and the broad-based growth in industrial orders and financial services assets that we saw in January and February has continued into March," Immelt said.
GE Infrastructure president and CEO Bill Woodburn said, "This acquisition is a game-changing event for the security industry. The combination of InVision with GE's Ion Track business provides GE with a broad set of products and advanced scientific capabilities to address present and future security protection needs. Customers can expect sophisticated detection systems that will help them to protect people and critical infrastructure assets. This leading-edge technology will be supported by the best service network in the world."
By combining InVision and GE Ion Track, GE will be able to provide a suite of complementary high-technology detection and security solutions to help protect airports and other mass transportation systems; border interdiction and customs sites; high security installations like power plants, chemical plants and military bases; and entertainment facilities such as sports arenas. The expanded platform of the combined entities will create more comprehensive security technology offerings, and increased capability to upgrade the installed base to higher capability.
Beginning in 1990, InVision pioneered the development of explosive detection systems in the aviation industry by introducing the first computed tomography (CT) technology for checked baggage inspection. GE Ion Track offers world-class ion trace detection systems for detecting explosives and narcotics.
"We are excited to become part of GE," said Sergio Magistri, President and CEO of InVision Technologies. "This transaction will improve market reach of the merged companies and accelerate development of technology and products to protect the public worldwide.
"I look forward to InVision's scientists working with GE's Global Research Center and GE's CT medical imaging capabilities."
Source: GE Security
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