Military communication equipment providers Harris Corporation and Israeli defense electronics company Elbit Systems announced the signing of a definitive agreement under which Elbit Systems of America, LLC (ESA) will acquire Harris’ Night Vision business for $350 million in cash.
The transaction is conditioned on completion of Harris’ previously announced proposed merger with L3 Technologies, Inc. (NYSE:LLL), as well as customary closing conditions including receipt of regulatory approvals.
“In January 2019, we announced that as part of the L3 merger regulatory process we had proactively started exploring the sale of our Night Vision business,” said William M. Brown, chairman, president and chief executive officer. “With the signing of the agreement to divest the Night Vision business, and yesterday’s approval by shareholders of the L3 Harris merger, we have achieved two significant milestones towards completing the transformational merger in mid-calendar 2019.”
Proceeds from the divestiture are expected to be used to pre-fund the L3 Harris pension and return cash to shareholders.
Headquartered in Roanoke, Virginia, the Night Vision business is a premier developer, producer and supplier of night vision technology for the U.S. and allied military and security forces and for the federal homeland security market. The Night Vision business reports as part of the Communication Systems segment.
Harris was led by the night vision industry for over 50 years, producing more night vision devices than all competitors combined.
Harris night vision and communications solutions deliver integrated tactical equipment to meet the advanced needs of the Department of Defense, special operations forces and first responders around the world. Harris’ technologies include networked and distributed tactical communication systems, night vision systems, and associated engineering and training services.
