Smiths Group announced on Monday that it has entered into an agreement with Safran S.A. to acquire Morpho Detection, a detection and security solutions company.
Upon regulatory approval, Morpho will be integrated into Smith’s existing detection division.
The agreement carries an approximate enterprise value of $710 million.
“The threat environment for people and critical infrastructure around the world is constantly evolving and becoming more complex and sophisticated,” Andy Reynolds Smith, chief executive of Smiths Group, said. “The response, to keep people safe and the world running, demands cutting-edge technology and cost-efficient solutions.”
Morpho Detection specializes in manufacturing and supplying detection services that strengthen security measures at airports, borders and high-risk critical infrastructure sites like power plants, military facilities and government buildings.
“Morpho Detection is a high quality business with a strong management team, and I am convinced that this combination provides a compelling competitive platform for product, service and technology leadership,” Smith said. “The acquisition is consistent with our approach to increasingly focus investment in highly attractive technology-led areas, and will create significant value for shareholders and position us for long-term growth.”
The move present an opportunity for Smith’s Group to strengthen its already robust catalogue of detection services and equipment, and will allow the company to provide cutting-edge technology in markets throughout the world.