GE has agreed to sell a majority stake in GE Security's homeland protection business to airport security firm SAFRAN for $580 million. GE said it has signed a definitive agreement with SAFRAN, under which the latter will acquire 81 per cent of GE Security's Homeland Protection.

Upon successful closure of the deal, SAFRAN will have majority interest in GE Security's homeland protection business with 81 per cent with GE holding 19 per cent. The transaction has been approved by the boards of both companies, and is subject to customary regulatory approvals, GE said in a release.

GE's homeland protection business, based in Newark, CA, will become part of SAFRAN's defence security division, which is currently owned by  Sagem Securite, led by chairman and CEO Jean-Paul Jainsky.

Dennis Cooke, will continue as president & CEO, for the GE Security Homeland Protection business, the release said.

''This is a great move for our homeland protection business,'' said Dennis Cooke, president and CEO of GE Security Homeland Protection. ''Our business has a strong leadership team, dedicated and talented employees, innovative technology, a large installed base and a strong brand. This move aligns homeland protection with a business that is committed to globalisation and further investment in new detection technologies and new products for the Homeland Security space,'' he added.

The combined company will focus on providing identification and detection services globally and will draw on technology advancements at GE's Global Research Center and GE Healthcare, the release said.

SAFRAN and GE have been working together for over the past 35 years to deliver aviation technology solutions. The new entity will feature SAFRAN's leading ID management and GE Security Homeland Protection's world-class aviation safety, checked baggage screening, military and critical infrastructure protection together with new growth platforms in chemical / biological, X-ray and radiation/nuclear detection.

Last year, SAFRAN acquired SDU-Identification, a Dutch manufacturer of secure passports and ID documents and Motorola's biometrics business `Printrak'.

''Adding GE Homeland Protection will significantly bolster our group's third core business,'' Jean-Paul Herteman, CEO of SAFRAN, said, adding, ''This makes SAFRAN a pivotal player in the security market, a business that will generate 20 per cent of the group's total revenues in the medium term, with double-digit profit perspectives and reducing exposure to aerospace cycles. Furthermore, this transaction is the latest step in our long-standing relationship of mutual trust and partnership with GE that reaches back some 35 years.''

Combining Homeland Protection's capabilities with SAFRAN's portfolio will enable SAFRAN to become a leading global player in airport security solutions. Already a world leader in biometric identification solution, SAFRAN will now provide a differentiated, integrated offering to customers. From checked baggage screening to passenger identity and credentialing to check in, SAFRAN will be able to provide seamless, fully integrated solutions to customers in homeland security. This will enable customers to proactively address threats delivered by terrorists and drug traffickers prior to a potential occurrence, the release added.

GE Security Inc is a wholly owned affiliate of the General Electric Company focused on communication and information technologies for security and life safety solutions. With more than 5,700 employees and operations in over 26 countries, GE Security is into fire detection, access and building control, video surveillance, explosives and drug detection, key management and structured wiring.

SAFRAN is an international high-technology group with leadership positions in its core businesses of aerospace propulsion, aircraft equipment and defence security. The SAFRAN Group employs about 54,000 people in over 30 countries and generates revenue of more than €10 billion.