Communications and information technology company Harris Corporation is to divest its Broadcast Communications business. Confirmation of the decision came as the company announced its third quarter results.
William M Brown, president and chief executive officer, said the decision to divest Broadcast Communications resulted from a thorough review of the company’s business portfolio, which determined that the business was no longer aligned with the company’s long-term strategy. “The plan to sell these assets supports our disciplined approach to capital allocation, and we intend to use the proceeds to return cash to shareholders and invest in growing our core businesses,” he advised.
In an open letter, Harris Morris, President, Broadcast Communications Division, wrote:
“Today, Harris announced its decision to divest the Broadcast Communications business. I fully support this decision and believe that the timing is right for both Harris and Broadcast Communications.
Harris has supported us by investing in our business, allowing us to develop some of the market’s most innovative, solution-based technologies. However, over time Broadcast Communications has become less aligned with the Harris core businesses and long term strategy.
Operating independently or as part of a broadcast or media-focused enterprise will provide us with strategic investment, increased competitive flexibility, and customer focus to lead the continuing transformation in this competitive marketplace.
The decision to divest in no way reflects the quality of the work Broadcast Communications performed in support of our customers and our company. Harris simply determined that Broadcast Communications could provide higher value and operate more effectively under a different ownership model.
In the interim, Broadcast Communications will continue to be a part of Harris Corporation and operate business as usual. Our valued relationships, both longstanding and new, remain our top priority. The global team will continue to work diligently to ensure our commitment to our customers and partners remains steadfast, our execution to fulfil commitments is flawless, and our progress against strategic objectives remains focused.”