Harris Corporation (NYSE: HRS) has agreed to sell to an affiliate of Veritas Capital its government IT services business for USD 690m in cash, the company said.
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 US government agencies, including supporting NASA´s Space Communications Network and Deep Space Network programs, and operates within the company´s Critical Networks segment.
In connection with the announcement, Harris´ air traffic management business will now operate as part of the company´s Electronic Systems segment.
Veritas Capital 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.
Harris Corporation is a technology innovation company.