Honeywell International Inc. said it has entered into an agreement to purchase RAE Systems Inc. for $340 million in cash.
Honeywell said it will integrate the San Jose, Calif.-based manufacturer of gas- and radiation-detection systems into the analytics unit of its Honeywell Automation and Control Solutions business.
The acquisition will create "a leading global manufacturer of fixed and portable instrumentation and sensing technologies," Morris Township, N.J.-based Honeywell asserted in a news release.
RAE Systems partnered with private-equity firm Vector Capital to take the company private in June 2011.
"With the full support of Vector Capital, we have broadened our product offerings, expanded our global presence and optimized our internal operations," RAE Systems CEO Robert Chen said in a news release. "Our range of products, innovation in photo-ionization detection and wireless technology are highly complementary to Honeywell.
"As part of Honeywell, we will enjoy the scale and global presence to expand the reach of our portfolio, including in high-growth markets like Brazil and Russia. This transaction will also be beneficial to our customers and distribution partners, providing them access to an expanded portfolio of gas and sensing technologies and a comprehensive range of additional life-safety solutions."
Honeywell said it expects the transaction to take place in the second quarter.