Harris sells IT services business to Veritas Capital; deal not to affect air traffic control

MELBOURNE, Fla. – Executives of Harris Corp., the aerospace and electronics company based in Melbourne, Fla., are selling their company's government information technology (IT) services business to Veritas Capital, a private equity firm in New York, for $690 million in cash.

Feb 17th, 2017
By Mil & Aero staff
By Mil & Aero staff

MELBOURNE, Fla. – Executives of Harris Corp., the aerospace and electronics company based in Melbourne, Fla., are selling their company's government information technology (IT) services business to Veritas Capital, a private equity firm in New York, for $690 million in cash.

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

The Harris air traffic management franchise, primarily serving the U.S. Federal Aviation Administration (FAA) in Washington, is not part of the divestiture and will remain with Harris, company officials say.

The Harris air traffic management business will operate in 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, officials say.

Related: Northrop Grumman to install Harris in-line data encryption units

Harris will use money from the sale to support the company’s capital allocation strategy, including pension pre-funding and share repurchases. The transaction is expected to close before the end of fiscal 2017.

“These divestitures sharpen Harris’ focus on growing core franchises where technology is a key differentiator, providing compelling value to our customers,” says William Brown, the Harris chairman, president, and chief executive officer.

Veritas Capital invests in aerospace and defense, health care, technology, national security, communications, energy, and education companies that provide products and services to government and commercial customers.

For more information contact Veritas Capital online at www.veritascapital.com, or Harris Corp. at www.harris.com.

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