MELBOURNE, Florida, December 6, 2012 — Harris Corporation (NYSE:HRS)
has reached an agreement to sell Broadcast Communications to an
affiliate of The Gores Group, LLC for $225 million. The price includes
$160 million in cash at closing, a $15 million subordinated promissory
note and an earnout of up to $50 million based on future performance.
The transaction is subject to customary regulatory review and closing
conditions and is expected to be completed in early calendar year
2013. On May 1, 2012, Harris announced plans to divest Broadcast
Communications.
"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."
"In Harris Broadcast Communications, we are investing in a proven
technology leader with great products and a great team. We are excited
to provide the capital and support to transition this division to a
strong and independent company further enabling it to continue
developing and delivering market leading technologies to its
customers," said Ryan Wald, Managing Director of The Gores Group.
About The Gores Group
The Gores Group, LLC is a global investment firm focused on acquiring
controlling interests in mature and growing businesses which can
benefit from the firm's operating experience and flexible capital
base. The firm combines the operational expertise and detailed due
diligence capabilities of a strategic buyer with the seasoned M&A team
of a traditional financial buyer. The Gores Group, which was founded
in 1987 by Alec E. Gores, has become a leading investor having
demonstrated over time a reliable track record of creating substantial
value in its portfolio companies alongside management. Headquartered
in Los Angeles, The Gores Group maintains offices in Boulder, CO, and
London. For more information, please visit www.gores.com.
About Harris Corporation
Harris is an international communications and information technology
company serving government and commercial markets in more than 125
countries. Headquartered in Melbourne, Florida, the company has
approximately $5.5 billion of annual revenue and about 15,000
employees — including 6,000 engineers and scientists. Harris is
dedicated to developing best-in-class assured communications®
products, systems, and services. Additional information about Harris
Corporation is available at harris.com.
(Press Release)
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