Technology company, defence contractor and information technology services provider L3Harris Technologies is selling its military training business to CAE, a Canadian manufacturer of simulation technologies, modelling technologies and training services to airlines, aircraft manufacturers, healthcare specialists, and defence customers.
CAE will acquire L3Harris’ Military Training business for $1.05 billion in cash. With annual revenue of approximately $500 million, the military training business provides a wide range of training systems, simulations and related services to US and international military customers.
At the same time L3Harris Technologies sold its combat propulsion systems businesses to German industrial company Renk for about $400 million in cash.
William M Brown, chairman and chief executive of L3Harris, said: “With today’s announcement, we have now completed or announced divestitures of businesses with a combined $1.4 billion of revenue for $2.5 billion in expected proceeds, and our portfolio shaping process is ongoing. These agreements place our military training and combat propulsion systems and related businesses with well-suited buyers, while positioning L3Harris to further focus on its core technologies and execute its strategic priorities.”
Proceeds from the divestitures are expected to be used for share repurchases.
L3Harris Technologies is headquartered in Melbourne, Florida.
Date published: 3 March 2021