Gores to Acquire Harris Broadcast Communications

$225 million sale to investment group expected to be completed in early 2013

By George Winslow -- Broadcasting & Cable, 12/6/2012 1:38:18 PM

After announcing plans in May of 2012 to sell its broadcast business, Harris Corporation has reached an agreement to sell its Broadcast Communications division to an affiliate of The Gores Group, LLC for $225 million.

"In Harris Broadcast Communications, we are investing in a proven technology leader with great products and a great team," noted Ryan Wald, managing director of The Gores Group in a statement. "We are excited to provide the capital and support to transition this division to a strong and independent company further enabling it to continue developing and delivering market leading technologies to its customers."

The price includes $160 million in cash at closing, a $15 million subordinated promissory note and "an earnout of up to $50 million based on future performance," the companies noted.

The two companies expect the deal to be completed in early 2013.

William M. Brown, president and chief executive officer of Harris noted in a statement that the sale of the broadcast business was part of an effort to "focus on our core businesses," and that the company planned "to repurchase up to $200 million of our shares after the deal closes."