Harris selling business unit

Dec. 7, 2012 at 9:42 AM
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MELBOURNE, Fla., Dec. 7 (UPI) -- The Harris Corp. is selling its U.S. television broadcast systems and services business to an affiliate of The Gores Group.

The deal, which is subject to customary regulatory reviews and closing conditions, is expected to be completed early next year.

Harris said it is letting go of its Broadcast Communications business for $225 million. The price includes $160 million in cash at closing, a $15 million subordinated promissory note and an earn-out of as much as $50 million based on future performance.

"The sale of Broadcast Communications reflects our strategy to optimize our business portfolio and focus on our core businesses," said William M. Brown, president and chief executive officer of Harris.

"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."

The Gores Group LLC is a global investment firm. The identity of the affiliate that will acquire Broadcast Communications wasn't disclosed.

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