Aerospace and defense electronics supplier Emcore (Nasdaq: EMKR) has signed an approximately $5 million cash deal to acquire the space and navigation unit of L3Harris Technologies (NYSE: LHX).
Emcore said Tuesday it aims to expand the company’s inertial navigation technology offerings, add design and test equipment for space applications and create mutual business opportunities with L3Harris through the transaction.
The deal includes intellectual property and outstanding assets and liabilities, including a facility leased by the L3Harris space and navigation business in Budd Lake, New Jersey, for manufacturing operations.
As part of the agreement, Emcore will gain access to master supply agreements covering booster rate gyro and tri-axial inertial measurement units intended for launch vehicle programs.
The transaction comes a month after L3Harris reorganized its businesses into three segments focused on communication systems, integrated mission systems and space and airborne systems.
Emcore reported $42.2 million in revenue for the first quarter of its 2022 fiscal year ended Dec. 31, 2021, and $9.9 million of the consolidated sales came from the aerospace and defense segment.
The Alhambra, California-based company said it expects to complete the acquisition by June 30.