Smiths Group to Acquire Safran’s Morpho Detection Business
The $710 million deal will give Smiths Group explosive detection capabilities.
Morpho Detection will become part of Smiths Group's Detection division, which designs and manufactures sensors that detect and identify explosives, weapons, chemical agents and other contraband.
LONDON – British technology company Smiths Group announced today it has entered into an agreement to acquire Morpho Detection, a California-based detection and security solutions company, from French technology firm Safran for $710 million.
In March, Safran said it was reviewing its remaining security activities after putting the Morpho business up for sale, tying its future to aviation and defense.
Morpho Detection will be merged with Smiths Group’s detection division, which provides products and services to detect a wide range of threats, including explosive, chemical and radioactive materials, and contraband.
“The threat environment for people and critical infrastructure around the world is constantly evolving and becoming more complex and sophisticated,” Smiths Group CEO Andrew Reynolds said in a statement. “The response, to keep people safe and the world running, demands cutting-edge technology and cost-efficient solutions.”
The company’s expected annual cost synergies of about $30 million will be delivered by the third full year following closing, according to a press release. The company expects mid-single digit earnings per share accretion in the first full year of ownership.
The closing of the acquisition is subject to customary conditions, including regulatory approvals. The deal is expected to close in early 2017. In the event that regulatory clearances are not obtained, Smiths can terminate the acquisition agreement and, in this case, will be required to pay a termination fee of $40 million to Safran.
If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!
About the Author
Rodney Bosch, Senior Editor
Although Bosch’s name is quite familiar to those in the security industry, his previous experience has been in daily newspaper journalism. Prior to joining SECURITY SALES & INTEGRATION in 2006, he spent 15 years with the Los Angeles Times, where he performed a wide assortment of editorial responsibilities, including feature and metro department assignments as well as content producing for latimes.com. Bosch is a graduate of California State University, Fresno with a degree in Mass Communication & Journalism. In 2007, he successfully completed the National Burglar and Fire Alarm Association’s National Training School coursework to become a Certified Level I Alarm Technician.
Related Content
Security Is Our Business, Too
For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Commercial Integrator + Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add to your bottom line.
A FREE subscription to the top resource for security and integration industry will prove to be invaluable.
