GE Unit to Buy Interlogix
AUSTIN, Texas (AP) _ General Electric Co. said Tuesday that a subsidiary has agreed to buy Interlogix Inc., a manufacturer of security products and systems, for about $760 million in cash and stock.
GE said its Industrial Systems division would pay $38.86 in equal amounts of cash and stock, a 35 percent premium over Austin-based Interlogix’s closing price Monday on the Nasdaq Stock Market.
In trading Tuesday, Interlogix shares rose $9.92, or nearly 35 percent, to $38.63 on the Nasdaq Stock Market, and GE shares rose $1.42 to $39.72 on the New York Stock Exchange.
Holding company Berwind LLC owns about 80 percent of Interlogix’s stock, and GE said the investor agreed to support the deal.
The companies said the purchase was expected to close in the first quarter of next year.
Interlogix makes electronic security products for commercial, industrial and residential use, including anti-burglar, fire-protection and surveillance systems. It has annual revenues of more than $600 million, the companies said.
According to documents filed with the Securities and Exchange Commission, Interlogix’s competitors include Honeywell International Inc.‘s Pittway division and Tyco International Ltd.’s ADT Securities Systems.
Lloyd Trotter, president and chief executive of GE Industrial Systems, said Interlogix would give GE leading-edge technology in the security sector.
``These innovative technologies will be particularly important as the demand for security products and systems continues to increase,″ Trotter said.
GE Industrial Systems makes products for controlling and distributing electrical power and equipment.