NEWARK, Calif., August 2 -- The acquisition of InVision Technologies by General Electric, which was expected to be completed in July, is being delayed and could be terminated due to an investigation by the Justice Department and the Securities and Exchange Commission (SEC) concerning InVision's "voluntary disclosure of an internal investigation of certain possible offers of improper payments by distributors in connection with foreign sales activities," the company said.
InVision said it has been informed that the agencies may begin an investigation into the matter, including possible violations of the Foreign Corrupt Practices Act. InVision said its internal investigation has been conducted in consultation with General Electric, which had agreed to acquire InVision in a $900 million cash merger (See http://www.photonics.com/todaysheadlines/XQ/ASP/url.lookup/id.4923/QX/today.htm, "InVision Approves GE Acquisition," June 25), and that it intends to fully cooperate.
The internal investigation and any related investigation may not be completed until Oct. 31, InVision said. It said completion of the acquisition remains subject to the closing conditions in the merger agreement, including regulatory approvals. If the acquisition is not completed by Oct. 31, either InVision or GE may be entitled to terminate the merger agreement.
InVision makes explosives detection systems based on advanced computed tomography technology, x-ray diffraction and quadrupole resonance.
For more information, visit: www.invision-tech.com