Harris, which makes most of its revenue from tactical communications gear used by the military, said it will sell its broadcast communications unit to an affiliate of the Gores Group for $225 million. The offer price includes $160 million in cash, a $15 million subordinated promissory note and a $50 million payout based on future performance, Harris said in a statement. The transaction is expected to be completed in early 2013, the company said. By selling to a private equity firm, Harris Broadcast is expected to remain mostly intact.
On 5/1, Harris Morris, President of the Broadcast Division, announced Harris’ decision to divest the business.
Harris Broadcast makes transmitters for radio and television, along with automation gear, revenue management software and more.
RBR-TVBR observation: There is a bit of synergy in the move. Over a year ago when Dial Global merged with Westwood One, Westwood One’s investor/debt holder The Gores Group also stayed in.