During Safran's Capital Markets Day 2016 on March 14th, the company announced that it was in discussions with several potential acquirers regarding its Morpho Detection business and should be in exclusive negotiations shortly with a signing in the coming weeks. Safran is also performing a strategic review of the rest of the Morpho security and identity business. Morpho Detection, which was acquired from General Electric (81% stake in 2009 and the remaining stake in 2012), provides a range of explosive detection systems for airports.
Safran received an unsolicited bid for the business last October from an undisclosed competitor. So who could be in the mix for the business? The usual suspects would include OSI Systems, Smiths, and L-3. AS&E is a competitor but they're probably too small considering Morpho Detection's annual revenue of approximately $500 million Euros. Leidos with its VACIS and Reveal security products could be a player, although they're a bit busy at the moment with its Lockheed deal. I guess we'll just have to wait and see.
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