Veritas Capital has acquired Harris Corp.'s government IT services business for $690 million in cash. The deal's valuation is less than 1 times annual revenues.
Harris's IT services business (Herndon, Virginia), promotes IT and engineering managed services to U.S. government agencies. The company's clientele includes NASA’s Space Communications Network and Deep Space Network programs.
Harris's IT services business will generate roughly $1.07 billion in fiscal 2017 revenues, the companies predicted. Harris’ air traffic management franchise, primarily serving the FAA, is not part of the divestiture and will remain with Harris. The deal is expected to close later this year.
Harris has been selling off assets to strengthen the company's balance sheet, sharpen the company's focus and create shareholder value, the company has stated.
Veritas Capital is a private equity firm that invests in companies in such markets as aerospace & defense, healthcare, technology, national security, communications, energy and education.
