GE Infrastructure, a unit of General Electric Co., will acquire Edwards Systems Technology (EST), the fire detection systems business of SPX Corp., for nearly $1.4 billion in cash.
One piece of the broader acquisition includes Edwards Signaling and Security Systems, Cheshire, Conn., a supplier of audible and visual electrical and electronic signals for indoor, outdoor and hazardous locations. The company recently broadened its focus to include security and fire systems for the commercial and industrial markets.
EST was acquired by SPX in 1998 as part of its acquisition of General Signal.
The acquisition allows GE to move into fire detection systems and allows the company to provide an integrated commercial building systems, a market it sees as a $10 billion opportunity.
“GE Infrastructure is rapidly becoming the premier security provider and acquiring Edwards positions us as a leader in the $5 billion fire detection and life safety segment,” Bill Woodburn, president and chief executive of GE Infrastructure, said in a statement.
Fire detection systems are the only security devices that are required as part of the building specification in new construction projects, GE officials said. This means such systems play a central role in the design and specification of overall security systems.
The Edwards acquisition, which is subject to regulatory approval, is expected to be completed in the first quarter of 2005.
The acquisition of EST is GE’s latest move into the security market. In March, GE agreed to acquire InVision Technologies Inc., which makes devices to detect explosives as well as other security systems, for about $900 million.
Separately, GE announced it would sell its heating, ventilaton and air conditioning/refrigeration motor and capacitor business to Regal-Beloit Corp. for $379 million.