French firm Safran is acquiring a major share of GE Security’s Homeland Protection business for $580 million.
Combining Homeland Protection’s capabilities with Safran’s portfolio will enable Safran to become a leading global player in airport security solutions, GE officials said in an announcement today.
Under terms of the definitive agreement, which has been approved by the boards of both companies, after the acquisition is completed Homeland Protection’s parent company, General Electric Co., will own 19 percent and Safran will own 81 percent.
The new entity will focus on identification solutions and detection offerings globally and will benefit from continued access to technology advancements from GE’s Global Research Center and GE Healthcare, the officials said.
The combination of the complementary technology of both businesses will provide customers with the benefit of new technology solutions to keep ahead of the changing threats, they added.
From checked baggage screening to passenger identity and credentialing to check-in, Safran will be able to provide seamless, fully integrated homeland security solutions that will enable clients to address threats prior to a potential occurrence, the officials said.
The new entity will feature Safran’s ID management, plus Homeland Protection’s aviation safety, checked baggage screening, military and critical infrastructure protection together with new growth platforms in chemical and biological, X-ray and radiation and nuclear detection.
The Homeland Protection business will become part of Safran’s Defense Security division of Sagem Securite, led by Chairman and Chief Executive Jean-Paul Jainsky. Dennis Cooke will stay on as president and CEO of the Homeland Protection business, which will remain in Newark, Calif.
“This move aligns Homeland Protection with a business that is committed to globalization and further investment in new detection technologies and new products for the homeland security space,” Cooke said in a statement.
The purchase strengthens the partnership between the two companies that have worked together for 35 years and manufacture commercial aircraft engines through their CFM International joint venture, Bloomberg News reported.
In 2008, Safran acquired SDU-Identification, a Dutch manufacturer of secure passports and ID documents, and Motorola’s biometrics business. “Adding GE Homeland Protection will make Safran a pivotal player in the security market, a business that will generate 20 percent of the group’s total revenues,” Safran CEO Jean-Paul Herteman said.
The transaction is subject to customary regulatory approvals.
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