Harris finds buyer for night vision business
By
Ross Wilkers
Harris Corp. has found a buyer for its night vision business, a move intended to help the company move forward on its merger with L3 Technologies.
Fresh off getting shareholder approval for a megamerger, Harris Corp. has agreed to sell its night vision technology business to Elbit Systems’ U.S. subsidiary for $350 million in cash.
Harris said Friday the deal is conditioned on the completion of its merger with L3 Technologies announced in October of last year and currently in the antitrust regulatory approval process. Both sets of shareholders approved the combination Thursday.
In January, Harris CEO Bill Brown said the company was “moving proactively” to try and find a buyer for the night vision business. Harris made that move amid a second request for information from the Justice Department surrounding the impending merger.
Cowen & Company analysts estimated Harris’ night vision business at around $150 million-$160 million in revenue with profit margins in the mid-teens.
The Roanoke, Virginia-based Harris night vision business’ customers include U.S. and allied military forces, plus the Homeland Security Department.
Morgan Stanley & Co. is financial adviser to Harris and Sullivan & Cromwell LLP is legal counsel. Jefferies is acting financial adviser to Elbit Systems of America and Covington & Burling LLP is legal counsel.
NEXT STORY: SAIC keeps $292M NASA safety support contract