The completion means Harris Corp is now officially out of the broadcast business, after 50+ year run. For now, it will continue to be called Harris Broadcast. The valuation of the deal was $225 million, comprised of $160 million in cash, a $15 million subordinated promissory note and an earnout of up to $50 million based on future performance.
Said Harris Morris, CEO of Harris Broadcast: “This is an exciting new chapter for Harris Broadcast, our employees and our customers. The Gores Group is an ideal fit to help us move the business forward and help drive innovation, streamline operations and improve customer service. They will also provide us additional resources such as a flexible capital base and introduce new talent to the Company.”
Added Ryan Wald, Managing Director of The Gores Group: “We anticipate great things from Harris Broadcast. The Company has proven technology, great products and an outstanding team. With our equity capital and guidance we are confident that Harris Broadcast will transition to a strong independent company that will continue to develop and deliver market leading technology and service to its customers.”
Carl Vogel, a cable television and satellite industry vet, is a senior advisor to The Gores Group and will be a member of the Gores team providing advice and strategic guidance.