Harris Corp has sold its broadcast division for $225m (£140m) to private equity firm the Gores Group.

The deal is expected to complete early next year, subject to regulatory approvals.

Managing director of the Gores Group Ryan Wald said: “In Harris Broadcast Communications, we are investing in a proven technology leader with great products and a great team.

“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.”

Harris said the price includes $160 million in cash, a $15 million subordinated promissory note and an earn out of up to $50 million, which will be based on future performance.

Harris revealed its intention to sell the division back in May.

“The sale of Broadcast Communications reflects our strategy to optimise our business portfolio and focus on our core businesses,” said Harris Corp president and chief executive William M. Brown.

Brown said Harris would use the proceeds to repurchase up to $200 million Harris shares.

 

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