Gores Group Buys Harris Broadcast Communications
| RADIO ONLINE | Friday, December 7, 2012 | 2:52pm CT |
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The Gores Group, a global investment firm, has made a binding offer to acquire the Harris Broadcast Communications Division from Harris Corporation for $225 million. Under the deal, Gores is acquiring all Harris Broadcast business areas and product lines. The price includes $160 million in cash at closing, a $15 million subordinated promissory note and an earnout of up to $50 million based on future performance.
"Being owned by The Gores Group as a privately-held company will enable Harris Broadcast to capitalize on our market-leading position, continue to pursue growth opportunities, and aggressively respond to continually evolving market trends and customer needs," said President Harris Morris.
"In Harris Broadcast Communications, we are investing in a proven technology leader with great products and a great team. 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," added Ryan Wald, Managing Director of The Gores Group.
Harris Broadcast has retained use of the Harris brand for an extended period following the close, which is expected in the first quarter of 2013. Harris announced plans to divest the Broadcast Communications unit last May.
