MELBOURNE, Fla. (AP) -- Harris Corp., an information technology products and services provider, said Thursday that it reached a deal to sell its broadcast communications business to an investment firm for up to $225 million.
Under the agreement The Gores Group LLC will pay Harris $160 million in cash at closing. Harris will also receive a $15 million subordinated promissory note and an additional payment of up to $50 million based on future performance.
The deal is subject to regulatory approval and other closing conditions. It is expected to close early next year.
Harris sells tactical radio communications systems used by military, government and commercial organizations. It also provides information technology services to government and other customers.
The company said in May that it planned to sell the broadcast communications business as part of an effort to focus on its core businesses.
The company said it still plans to buy back up to $200 million of its shares after the deal closes. Those shares are in addition to the $200 million of share repurchases already planned for fiscal 2013, Harris said.
Harris shares fell 38 cents to $47.60 in morning trading.
- Investment & Company Information