Harris to sell off broadcast communications business
May 15, 2012
Harris is set to end its long association with the broadcast communications market after it announced plans to sell off that division of the company.
William M. Brown, president and chief executive officer, issued a statement within the release of the company’s latest financial results, which said of the move: “The decision to divest Broadcast Communications resulted from a thorough review of our business portfolio, which determined that the business is no longer aligned with the company's long-term strategy.”
Brown said the plan to sell the Broadcast Communications business supports the company’s “disciplined approach to capital allocation,” adding that the company intends to use the proceeds to return cash to shareholders and invest in growing its core businesses.
Harris Morris, president of the Broadcast Communications Division at Harris, said he fully support the decision and the timing of the move.
“Harris has supported us by investing in our business. However, over time, Broadcast Communications has become less aligned with the Harris core businesses and long-term strategy,” he said, echoing the statement made by his CEO.
Morris added that operating independently or as part of a broadcast or media-focused enterprise would provide them with strategic investment, increased competitive flexibility and customer focus in what is an increasingly competitive marketplace.
“The decision to divest in no way reflects the quality of the work Broadcast Communications performed in support of our customers and our company,” insisted Morris, who said Harris simply determined that Broadcast Communications could provide higher value and operate more effectively under a different ownership model.