GE’s acquisition of access control and explosives detection manufacturer InVision Technologies Inc. may be in jeopardy because of an internal probe being conducted by InVision. InVision says an internal investigation found improper payments were possibly made to distributors in non-U.S. sales.
GE announced in March its plans to acquire InVision for $900 million. Either company may call off the purchase if it is not completed by Oct. 31. The U.S. Justice Department and the Securities and Exchange Commission (SEC) are planning investigations into the possible violations of the Foreign Corrupt Practices Act that may go beyond the Oct. 31 deadline.
GE issued a statement saying it is hopeful the matter will be resolved and continues to want to conclude the acquisition.
The probe isn’t the first snag to hit the potential security marriage. According to Bloomberg News, InVision and GE settled a lawsuit in July by shareholders who were opposed to the purchase. InVision is also under a separate SEC investigation for alleged insider trading that took place before the GE acquisition was announced.
