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Elbit Systems To Buy Harris Night Vision For $350M

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Elbit Systems To Buy Harris Night Vision For $350M

Harris Corporation (NYSE: HRS) and Elbit Systems Ltd. (NASDAQ: ESLT) announced a $350-million deal Friday for Elbit to acquire Harris' night vision business.

What Happened

The sale is predicated on the completion of Harris' recent proposed merger with L3 Technologies, Inc. (NYSE: LLL), as well as customary closing conditions that include regulatory approval, Elbit said. 

Harris Night Vision develops, produces and supplies night vision technology for the U.S. military, allied military and security forces and the federal homeland security market, according to the press release. 

The proceeds from the sale of the night vision business are expected to be used to pre-fund the L3 Harris pension and return cash to shareholders, Harris Corp. said in a press release. 

Haifa, Israel-based Elbit Systems is a tech company engaged in defense, homeland security and commercial programs. 

Why It's Important

"With the signing of the agreement to divest the Night Vision business and yesterday's approval by shareholders of the L3 Harris merger, we have achieved two significant milestones towards completing the transformational merger in mid-calendar 2019, William Brown, Harris Corp.'s chairman, president and CEO, said in a statement. 

Elbit Systems President and CEO Bezhalel Machlis said in a statement that the acquisition is significant to the company's long-term growth strategy, particularly in the U.S. 

Elbit shares were trading 1.36-percent higher at $135.40 at the time of publication Friday, while Harris Corp. shares were up 0.81 percent at $163.58.  

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Public domain photo via Wikimedia

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