InVision, Regulators Settle Probe

InVision Technologies Inc., the top U.S. supplier of airport bomb-detection machines, said it reached agreement with the U.S. Department of Justice in a criminal probe, allowing General Electric Co. to complete its $900-million purchase of the company Monday.

InVision will pay $800,000 to settle the investigation of allegations into whether its distributors in Thailand, China and the Philippines “had paid or offered to pay foreign officials” in connection with the sale of airport screening equipment, said Bryan Sierra, a Justice Department spokesman.

GE agreed in March to buy InVision for $50 a share to build its security-systems business. It delayed the purchase in July after InVision told U.S. regulators that an internal investigation uncovered possible wrongdoing. The companies on Nov. 1 extended the purchase agreement deadline to Dec. 27 to allow more time for InVision to resolve the issue.

InVision said in a statement that it also proposed a settlement to the Securities and Exchange Commission under which it neither denies nor admits wrongdoing. The SEC’s staff recommended that the commissioners approve the settlement, the Newark, Calif.-based company said.

InVision also must appoint a monitor to keep the government informed on the company’s compliance with the Foreign Corrupt Practices Act, Sierra said.

Shares of InVision rose $1.20 to $49.99 on Nasdaq. GE declined 16 cents to $35.67 on the New York Stock Exchange.

InVision Chief Executive Sergio Magistri, 51, will leave the company. Fairfield, Conn.-based GE expects cost reductions, though a spokesman said it was too soon to provide specifics.

Security is part of GE’s infrastructure division, which is targeting annual revenue of at least $6 billion in 2007.