Harris Corp. (NYSE: HRS) has agreed to sell its broadcast communications segment to an affiliate of The Gores Group for $225 million, including $160 million at the expected close date in early calendar year 2013.
Harris said the deal, subject to regulatory review and closing conditions, also includes a $15 million subordinated promissory note and a potential $50 million payout based on future performance.
“We plan to repurchase up to $200 million of our shares after the deal closes, ” Harris President and CEO William Brown said. “This is in addition to the $200 million of share repurchases already planned for fiscal 2013 and reflects our ongoing commitment to effectively deploy capital, including returning cash to shareholders.”
The company recently increased its quarterly dividend 12 percent, declaring a 37-cent dividend per share.