Harris Corp. [HRS] on Friday said it has completed the sales of its government information technology (IT) services business to the private equity firm Veritas Capital for $690 million in cash, which will be used to support its cash deployment strategy.
The deal was first announced in January (Defense Daily, Jan. 27).
Harris said it will use the proceeds from the sale for pension pre-funding and share repurchases.
Harris sold the business to focus on its core technology businesses.
The $1 billion government IT services business provides IT and engineering managed services to the United States government, including support for NASA’s Space Communications Network and Deep Space Network programs, the Defense Department, and other agencies.
With the divestiture of the government IT business and the recent sale also of its CapRock remote communications services business, Harris expects to post sales this year between $5.8 billion and $5.9 billion. The company will report its third quarter results on Wednesday.