Summary
L3Harris Technologies, Inc. (formerly Harris Corporation) announced on February 4, 2013, the successful completion of the sale of its Broadcast Communications Division. This divestiture was made to an affiliate of The Gores Group, LLC for a total consideration of $225 million. The transaction structure includes $160 million in immediate cash, a $15 million subordinated promissory note, and a potential earnout of up to $50 million contingent on the future performance of the divested division. This sale represents a strategic move by Harris to streamline its operations and focus on core business areas. Investors should monitor the impact of this transaction on the company's financial health and its ability to generate value from its remaining segments.
Key Highlights
- 1Harris Corporation completed the sale of its Broadcast Communications Division on February 4, 2013.
- 2The buyer is an affiliate of The Gores Group, LLC.
- 3The total sale price is $225 million.
- 4The sale consideration comprises $160 million in cash.
- 5A $15 million subordinated promissory note is part of the transaction.
- 6An earnout of up to $50 million is included, dependent on future performance.
- 7This filing is primarily for Regulation FD disclosure, with the press release furnished as an exhibit.