L3Harris Announces Divestiture of Visual Information Solutions Business

Rhea-AI Summary

L3Harris Technologies (NYSE: LHX) has announced the signing of a definitive agreement to divest its Visual Information Solutions business to NV5 Global Inc. (NASDAQ: NVEE) for an expected benefit of up to $100 million. This aligns with L3Harris's strategy for portfolio optimization aimed at enhancing innovation investments in national security. The transaction is anticipated to close by mid-2023, pending regulatory approvals. The company also recently acquired ViaSat's Tactical Data Link product line and Aerojet Rocketdyne, boosting its capabilities in multi-domain solutions.

Positive

• Divestiture aligns with strategy for portfolio optimization and innovation investments.
• Expected financial benefit of up to $100 million from the divestiture.
• Recent acquisitions of ViaSat's Tactical Data Link and Aerojet Rocketdyne enhance capabilities.

Negative

• None.

Highlights:

• Consistent with corporate strategy to shape portfolio to enable innovation investments
• Will provide balance sheet flexibility for previously announced acquisitions and strategic goals
• Business focuses on geospatial data analysis, imaging, real-time weather monitoring, and situational awareness

MELBOURNE, Fla.--(BUSINESS WIRE)-- L3Harris Technologies (NYSE: LHX) announced today the signing of a definitive agreement with NV5 Global Inc. (NASDAQ: NVEE) to divest its Visual Information Solutions business with an anticipated benefit up to $100 million. The transaction is expected to close mid-2023, subject to required regulatory approvals and other customary closing conditions.

The divestiture is consistent with the company’s broader strategy to continue portfolio optimization, and to align long-term innovation investments for national security priorities and whole-of-government, multi-domain solutions.

In October, L3Harris entered into an agreement to acquire ViaSat’s Tactical Data Link product line in order to modernize the Link 16 network to provide more resilient, multi-domain communications for the DoD, and that effort obtained comprehensive regulatory approval earlier this week. In December, L3Harris entered into an agreement to acquire Aerojet Rocketdyne, a key supplier of propulsion systems and energetics to the DoD, NASA and other partners and allies worldwide.

L3Harris Visual Information Solutions is a global provider of commercial geospatial software, technology and services used to extract and analyze reliable, accurate and actionable information from geospatial to terrestrial imagery.

About L3Harris Technologies

L3Harris Technologies, an agile global aerospace and defense technology innovator, delivers end-to-end solutions meeting our customers’ mission-critical needs. The company provides advanced defense and commercial technologies across space, air, land, sea and cyber domains. L3Harris has more than $17 billion in annual revenue and 47,000 employees, with customers in more than 100 countries.

Forward-Looking Statements

This press release contains forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Statements about the closing of, and the anticipated benefits of, the transaction are forward-looking and involve risks and uncertainties. L3Harris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221222005269/en/

Paul Swiergosz

Corporate

Paul.Swiergosz@L3Harris.com

321-378-5631

Source: L3Harris Technologies

FAQ

What is the recent news regarding L3Harris and NV5 Global?

L3Harris has signed an agreement to divest its Visual Information Solutions business to NV5 Global for an anticipated benefit of up to $100 million.

When is the L3Harris divestiture expected to close?

The divestiture is expected to close by mid-2023, contingent upon regulatory approvals.

How does the divestiture impact L3Harris's strategy?

The divestiture is part of L3Harris's portfolio optimization strategy, aimed at enhancing innovation investments for national security.

What are L3Harris's recent acquisitions?

L3Harris recently acquired ViaSat's Tactical Data Link product line and Aerojet Rocketdyne to strengthen its multi-domain capabilities.