(Reuters) - Harris Corp HRS.N, whose technology is used by the U.S. defense, said it would sell its government IT services business to an affiliate of private equity investment firm Veritas Capital for $690 million in cash to focus on its other businesses.
Harris said it expected the business to generate revenue of about $1.07 billion in the fiscal year ending June.
The business provides IT and engineering-managed services to U.S. government agencies. It supports NASA’s space communications network and deep space network programs.
The company’s other businesses provide wireless technology, undersea systems, space protection and intelligence solutions and produces imaging systems and goggles for U.S. and allied warfighters.
In November, Harris sold CapRock Communications, a part of its critical networks division that also houses the IT business.
Harris, which makes light detection and ranging sensors that measures distance by illuminating a target with a laser light, said on Friday that its air traffic management franchise, primarily serving the Federal Aviation Administration, is not part of the divestiture and will remain with Harris.
The company said it would use the proceeds to support its capital allocation strategy, including pension pre-funding and share repurchases.
Reporting by Arunima Banerjee in Bengaluru; Editing by Savio D'Souza and Maju Samuel