Arlington Capital Partners, a Washington, D.C.-based private equity firm, has agreed to acquire the Electron Devices and Narda Microwave-West divisions of L3Harris Technologies (NYSE: LHX) for an undisclosed sum.
The divisions will eventually form an independent company called Stellant Systems upon the transaction’s closing, which is expected to occur before the end of 2021, Arlington said Tuesday.
Stellant will serve as Arlington’s standalone platform in the market for mission-critical defense electronics. The private equity firm is executing the deal in partnership with the L3Harris Electron Devices division’s current leadership team, which will oversee Stellant upon the deal’s completion.
Stellant will focus on providing traveling wave tubes, nano microwave power modules and other radio frequency amplification products for electronic warfare, radar, space, industrial and medical end markets. The company will operate with over 800 employees across its three sites in California and Pennsylvania.
“Identifying and investing behind mission-critical systems and subsystems within the defense end market have long been areas of focus for Arlington,” said Peter Manos, a managing partner at Arlington.
Manos added that Arlington is excited to support Stellant as it pursues market opportunities to generate additional growth.
Harris Williams and Kirkland & Ellis respectively serve as financial and legal advisers to Arlington. Houlihan Lokey and Holland & Knight act as L3Harris’ financial adviser and legal counsel, respectively, in the transaction.