Palm Beach, Florida-based investment firm Kanders & Co. has agreed to acquire certain antenna and test equipment businesses of L3Harris Technologies (NYSE: LHX) for approximately $200 million.
L3Harris said Friday the planned divestment is part of its portfolio-shaping strategy for non-core assets and it expects to use the proceeds from the transaction to support its capital allocation plans.
The L3Harris businesses produce airborne and ground-based antennas, simulators and electromagnetic systems for use across communications, radar, warning systems, nuclear effects testing and imaging and remote sensing. The businesses are part of the space and airborne systems segment of L3Harris and have about 375 employees.
Kanders said it plans to combine the businesses under its newly established platform company Fisica, which will be headquartered in San Leandro, California, with a focus on supporting the Department of Defense in partnership with defense primes.
Kanders expects the acquisition to close in the second quarter of 2024, subject to regulatory approvals and other customary closing conditions.
The transaction includes $175 million in cash at closing and a seller note worth $25 million.
