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Harris to sell government IT services business to Veritas Capital for $690m

Staff Writer | January 27, 2017
Harris Corporation announced a definitive agreement under which an affiliate of Veritas Capital will acquire Harris’ government IT services business for $690 million in cash.
Harris Corporation
Acquisition   Services to U.S. government agencies
Proceeds from the transaction will be used to support the company’s capital allocation strategy, including pension pre-funding and share repurchases.

The transaction is subject to regulatory review and other customary closing conditions and is expected to close before the end of fiscal 2017.

Headquartered in Herndon, Virginia, the business provides IT and engineering managed services to U.S. government agencies, including supporting NASA’s Space Communications Network and Deep Space Network programs, and operates within the company’s Critical Networks segment.

Harris expected approximately $1.07 billion in fiscal 2017 revenue attributable to the business. Harris’ air traffic management franchise, primarily serving the FAA, is not part of the divestiture and will remain with Harris.