Harris Corporation (NYSE:HRS) today announced a definitive agreement under which an affiliate of Veritas Capital, a leading private equity investment firm, will acquire Harris' government IT services business for $690 million in cash. 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.
Today's announced divestiture, coupled with the recent sale of CapRock, reflects our strategy of optimizing the business portfolio to create shareholder value, said William M. Brown, chairman, president and chief executive officer. These divestitures sharpen Harris' focus on growing core franchises where technology is a key differentiator, providing compelling value to our customers.
Current and prior period financial results for the divested businesses will be reported as discontinued operations, beginning in fiscal 2017's second quarter for CapRock and third quarter for the government IT services business. The company expects to benefit from the use of cash proceeds and restructuring actions related to the two divestitures, resulting in fiscal 2018 net dilution in a range of $0.10 to $0.15 per diluted share.
In connection with the announcement, Harris' air traffic management business will now operate as part of the company's Electronic Systems segment. As a result, Harris will have three business segments with no changes to its Communication Systems or Space and Intelligence Systems segments.
About Veritas Capital
Veritas Capital is a leading private equity firm that invests in companies that provide critical products and services to government and commercial customers worldwide including those operating in aerospace & defense, healthcare, technology, national security, communications, energy and education. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means. For more information on Veritas Capital and its current and past investments, visit www.veritascapital.com.
About Harris Corporation
Harris Corporation is a leading technology innovator, solving customers' toughest mission-critical challenges by providing solutions that connect, inform and protect. Learn more at harris.com.
Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements that reflect managements current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance on the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this release include but are not limited to anticipated satisfaction of the closing conditions for the sale of the business, the anticipated timing of the closing of the sale of the business, the anticipated use of proceeds from the sale of the business and creating value for shareholders, growing core franchises, expected fiscal 2017 revenue for the business to be divested, expected benefits from the use of cash proceeds and restructuring actions and the expected range of net dilution per share. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. The company's consolidated results, future trends and forward-looking statements could be affected by many factors, risk and uncertainties, including but not limited to: delays in, or failures in respect of, anticipated satisfaction of closing conditions, ability of the buyer to secure the required financing or otherwise achieving the closing of the transaction; other potential uses of proceeds; different benefits from the use of cash proceeds and restructuring actions; or different net dilution per share. Further information relating to factors that may impact the company's results, future trends and forward-looking statements are disclosed in the company's filings with the SEC. The forward-looking statements contained in this release are made as of the date of this release, and the company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
# # #
Contact Information:
Jim Burke
Harris Corporation
jim.burke@harris.com
321-727-9131
Veritas Capital:
Andrew Cole/Patrick Scanlan
Sard Verbinnen & Co
212-687-8080
veritas-svc@sardverb.com
Most recent headlines
11/12/2025
Dalet, a leading provider of cloud-native, end-to-end media workflow solutions, ...
08/12/2025
DENVER MediaKind, a global provider of cloud-based video streaming technology announced today that it is acquiring the video business of Harmonic Inc. for appro...
08/12/2025
NEW YORK Nielsen has announced that its Audience Segments from Nielsen Marketing Cloud (NMC) are now available across the Amazon Ads marketplace, including the ...
08/12/2025
Marshall Electronics showcases the CV355-27X-ND3 Optical Zoom NDI (NDI HX2, NDI HX3) Camera at ISE 2026 (Booth 4N900). Designed for users seeking high-quality ...
08/12/2025
Cinnafilm today announced the immediate availability of IPx LIVE and Tachyon LIVE, delivering broadcast-grade, real-time IP video transcoding and motion-compens...
08/12/2025
Following a successful 45th anniversary year in 2024, Hiltron reports increasing demand for its wide range of satellite communication equipment manufacturing, p...
08/12/2025
Eurovision winner Niamh Kavanagh is the first celebrity to be revealed for the s...
08/12/2025
Changing children's lives for good: A staggering 4.6 million raised in the 2025 appeal
The people of Ireland and people all over the world have once again...
08/12/2025
It's murder on the dancefloor as The Traitors Ireland legend Paudie Moloney ...
06/12/2025
In a live broadcast from the Reagan National Defense Forum, L3Harris Chair and CEO Christopher Kubasik joined Morgan Brennan on CNBCs Closing Bell: Overtime. Ku...
06/12/2025
FORT LAUDERDALE, Fla. A new survey from Pixitmedia by Datacore revealed a major shift in the Media & Entertainment industry in media archiving, with 85% of resp...
06/12/2025
HACKENSACK, N.J. LiveU has announced that the national public broadcaster Czech Television has completed one of the largest LiveU live production deployments fo...
06/12/2025
NEW YORK The National Academy of Television Arts and Sciences (NATAS) presented the Excellence in Production Technology Emmy Award to NASA+ and Dr. Tom Leight...
05/12/2025
2025 Sports Broadcasting Hall of Fame: Curt Gowdy Jr. - Master Storyteller, Nati...
05/12/2025
SVG Sit-Down: Veritone's Sean King on the Power of Mining Video, Audio DataThe company's Data Refinery offers users total control and governance over da...
05/12/2025
Platinum White Paper: Inside the Nashville Predators' Unified, Flexible, Sca...
05/12/2025
Netflix Reaches Agreement To Acquire Warner Bros. Following Planned WBD SplitThe deal does not include WBDs sports assets like TNT Sports (US, UK, LatAm), Euros...
05/12/2025
FOX Sports Returns to Indianapolis for Primetime Broadcast of Big Ten Championsh...
05/12/2025
SVG Summit 2025 Preview: Digital Engagement & Monetization Workshop Tackles the ...
05/12/2025
Atlanta United Lights Up New Emory Healthcare Studio With First Live Broadcast f...
05/12/2025
As Messi Takes the Pitch, MLS, Apple, NEP Roll Out Largest MLS Cup Production Ev...
05/12/2025
ESPN Enters College Football's Most Intense Month With Elevated Workflows fo...
05/12/2025
It's about that time! Awards season is in full swing, and the Film Independe...
05/12/2025
Every year, Spotify Wrapped offers a personalized look back at the audio that defined your year. It's a snapshot of your listening habits, designed to tell ...
05/12/2025
In 2025, Spotify's EQUAL, GLOW, and RADAR programs celebrated women, LGBTQIA , and emerging artists who turned moments into milestones. From breaking record...
05/12/2025
In our latest blog, we explain how Wi-Fi 7 rollouts can drive consumer loyalty with value-add services such as consumer cybersecurity. We also explore how this ...
05/12/2025
LOS ANGELES Netflix announced it has entered into an agreement to acquire the assets of Warner Bros. for $82.7 billion....
05/12/2025
NEW YORK Nielsens Gracenote has launched Gracenote Content Connect, a new ad platform that provides agencies, brands, supply-side platforms (SSPs) and demand-si...
05/12/2025
NEW YORK In an most important update to the workings of deal-based programmatic advertising, IAB Tech Lab has released version 1.0 of its Deals API for public c...
05/12/2025
NEW YORK Pass the turkey. Pass the stuffing. Pass the cranberry sauce. All are common requests of Americans celebrating Thanksgiving Day with family and f...
05/12/2025
NEW YORK Iris, the new cloud-connected camera control platform, has officially launched with features that turn virtually any PTZ camera into a software-connect...
05/12/2025
HOLLYWOOD, Calif. Netflix announced today that it has entered into an agreement to acquire the assets of Warner Bros. for $82.7 billion....
05/12/2025
NEW YORK Iris, the new cloud-connected camera control platform, has officially launched with features that turn virtually any PTZ camera into a software-connect...
05/12/2025
WASHINGTON The Federal Communications Commission has approved AT&T's $1.02 billion acquisition of spectrum from UScellular in a decision that was issued sho...
05/12/2025
The Best Coldplay Songs: 21 Tracks That Shoot for the Stars From Yellow to Viva La Vida, Fix You to Paradise, this playlist goes back to the start.
December ...
05/12/2025
Zafris Lecture Series Brings Nabil Ayers to Berklee The 32nd annual James G. Zafris Distinguished Lecture series was held on Thursday, November 13, with guest...
05/12/2025
Back to All News
Netflix Unveils the First Look for Land of Sin' - Premier...
05/12/2025
Introducing New Perks to Help You Get Even More from LinkedIn Premium Published on Dec 5, 2025 Categories: Company News, Product News
LinkedIn Corporate Co...
05/12/2025
Friday 5 December 2025
A new Game of Thrones Tale: Official trailer for Sky Exc...
05/12/2025
Back to All News
Don Lee, Lee Jin-uk, and Lalisa Manobal to Star in Netflix Act...
05/12/2025
Tis the season of giving once again and this year we've taken our Give Back Fridays' concept and turned it on its head.
In the autumn we were approach...
05/12/2025
Brayden Gogis doesn't remember a time when he wasn't completely fixated on games in all forms. In preschool, when they asked us to dress up as what we ...
05/12/2025
The Grinch steals the spotlight as the theme for The Late Late Toy Show 2025
Tune in tonight at 9:35pm on RT One and worldwide on RT Player
#LateLateToyShow...
05/12/2025
RT Announces New Presenters of Flagship News Programmes
New RT Six One News co-presenter Tommy Meskill
Sarah McInerney & Justin McCarthy join Morning Ir...
04/12/2025
ToolsOnAir Blackmagic Design HyperDeck Event Presets for just:in mac pro 2025 & ...
04/12/2025
ToolsOnAir AJA Ki Pro Event Presets for just:in mac pro 2025 & just:in linux
More Details:Starting with version 5.5, both just:in mac pro and just:in linux sol...
04/12/2025
Wangu Kanuri from Kenya and Godwin Asediba from Ghana are two of this years finalists for Thomsons Young Journalist of the Year Award. The pair are runners-up i...
04/12/2025
SVG Sit-Down: ProximaVision's Claudio Lisman on Why Tethered Drones Could Be...
04/12/2025
SVG Campus Shot Callers: Imry Halevi, Senior Associate Director of Athletics, Co...
Harris Corporation (NYSE:HRS) today announced a definitive agreement under which an affiliate of Veritas Capital, a leading private equity investment firm, will acquire Harris' government IT services business for $690 million in cash. 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.
