Summary
L3Harris Technologies (LHX), formerly Harris Corporation, announced on November 1, 2016, that it has entered into a definitive agreement to divest its Harris CapRock Communications commercial business to SpeedCast International Limited for $425 million in cash. This strategic move is intended to allow Harris to optimize its business portfolio, become a more focused company, and position itself for enhanced long-term growth. The net proceeds from this sale are earmarked for debt reduction and returning capital to shareholders, indicating a commitment to strengthening the balance sheet and rewarding investors. The transaction is subject to standard closing conditions and regulatory approvals, with an anticipated closing in the first quarter of calendar 2017. This divestiture represents a significant step in Harris's ongoing strategic evolution.
Key Highlights
- 1Harris Corporation to sell its CapRock Communications commercial business to SpeedCast International Limited for $425 million in cash.
- 2Transaction is expected to close in the first quarter of calendar 2017, subject to regulatory review and customary closing conditions.
- 3Proceeds from the sale are intended to be used for debt reduction.
- 4The company also plans to return cash to shareholders.
- 5The divestiture aims to optimize Harris's portfolio and create a more focused company for long-term growth.
- 6This announcement signifies a strategic portfolio adjustment by Harris Corporation.