The deal, which is expected to close in early 2013, is the culmination of an effort to sell the Broadcast Communications division announced on May 1, 2012.
The transaction includes $160 million in cash, a $15 million subordinated promissory note and an earn-out of up to $50 million based on future performance. The deal is subject to regulatory review.
"In Harris Broadcast Communications, we are investing in a proven technology leader with great products and a great team,” said Ryan Wald, managing director of The Gores Group. “We are excited to provide the capital and support to transition this division to a strong and independent company, further enabling it to continue developing and delivering market-leading technologies to its customers."
According to William Brown, president and CEO of Harris, the sale is part of a strategy to focus on its core businesses.
“As previously communicated, we plan to repurchase up to $200 million of our shares after the deal closes,” said Brown. “This is in addition to the $200 million of share repurchases already planned for fiscal 2013 and reflects our ongoing commitment to effectively deploy capital, including returning cash to shareholders."
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