MERGERS & ACQUISITIONS
Harris gets $225M for broadcast unit
Sale fits strategy to focus its lines of business
- By Mark Hoover
- Dec 06, 2012
Harris Corp. has agreed to sell its Broadcast Communications unit to The Gores Group, a global investment firm, for $225 million.
“The sale of Broadcast Communications reflects our strategy to optimize our business portfolio and focus on our core businesses,” said William M. Brown, Harris president and CEO.
The price includes $160 million in cash at closing, $15 million subordinated promissory note and an of up to $50 million based on future performance, Harris said.
“As previously communicated, we plan to repurchase up to $200 million of our shares after the deal closes. This is in addition to the $200 million of share repurchases already planned for fiscal 2013 and reflects our ongoing commitment to effectively deploy capital, including returning cash to shareholders," Brown said in a statement.
Harris Broadcast Communications helps broadcasters manage and distribute content and compete in an industry that is racing toward total media convergence, according to the Broadcast Communications website.
The unit has a list of technological firsts, such as the first condenser microphone in 1933 and the first high definition instant replay in the NFL, which came in 2007.
The transaction is expected to be completed early in calendar year 2013.
With the sale, Harris will have three main lines of business: RF Communications, Government Communications Systems and Integrated Network Solutions.
Mark Hoover is a staff writer with Washington Technology. You can reach him at email@example.com or follow him on Twitter @mhooverWT.