Best Divestiture

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Harris Corp. sells its IT services business and helps birth Peraton, a new platform for the federal market.

Seller: Harris Corp.

Buyer: Veritas Capital

Business: Harris IT Services

Value: $690 million

Why: Harris wanted to jettison its IT business so it could focus on its electronics and more platform-centric work and Veritas Capital was happy to oblige. For $690 million, Veritas picked up about $1 billion in annual revenue. Within a few months, the business installed Stu Shea as CEO and adopted the name of “Peraton.” Shea is building an experienced management team and creating a distinct culture. Peraton has at the same time won large contracts, including a $578 million TSA logistics services deal.

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