L3Harris Technologies has announced the signing of a definitive agreement under which it will sell its airport security and automation business to Leidos for US$1bn.
The transaction is expected to close in mid-2020 and is dependent on customary closing conditions, including the receipt of regulatory approvals.
“Today’s announcement represents a significant milestone in L3Harris’s strategic priority to reshape our portfolio following last year’s L3 and Harris merger,” said William M Brown, chairman and CEO, L3Harris. “The agreement provides a stable path forward for the Security & Detection Systems and MacDonald Humfrey Automation businesses, while enabling L3Harris to focus its resources on core technologies.”
Proceeds from the divestiture are expected to be used to repurchase shares and offset dilution.
With annual revenues of approximately US$500m, L3Harris’s Security & Detection Systems and MacDonald Humfrey Automation solutions are used by the aviation and transportation industries, regulatory and customs authorities, government and law enforcement agencies, and commercial and other high-security facilities.
Leidos is a Fortune 500 information technology, engineering, and science solutions and services leader working in the defense, intelligence, homeland security, civil and health markets.
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