After announcing plans in May of 2012 to sell
its broadcast business, Harris Corporation has reached an agreement to sell its
Broadcast Communications division to an affiliate of The Gores Group, LLC for
$225 million.
"In
Harris Broadcast Communications, we are investing in a proven technology leader
with great products and a great team," noted Ryan Wald, managing director of
The Gores Group in a statement. "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."
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 companies noted.
The
two companies expect the deal to be completed in early 2013.
William
M. Brown, president and chief executive officer of Harris noted in a statement
that the sale of the broadcast business was part of an effort to "focus on our
core businesses," and that the company planned "to repurchase up to $200
million of our shares after the deal closes."
