Houlihan Lokey served as financial advisor to Harris Corporation (NYSE: HRS) on the recently announced pending divestiture of its Government IT Services Business to Veritas Capital for $690 million.
Headquartered in Herndon, Va., the Government IT Services Business provides information technology, engineering, and technical services to a broad base of U.S. government agencies. The business maintains a franchise position within strategic end markets, including space, intel, healthcare, and federal law enforcement, with expertise in key capabilities, including R&D, software development, cybersecurity, and communications. Harris expected approximately $1.07 billion in fiscal 2017 revenue attributable to the business.
This transaction reinforces key trends in the government services M&A market:
- Strategic portfolio optimization continuing to drive divestiture activity, and
- Continued interest of private equity in the sector, particularly from firms that have a track record of successful investments in government and defense platforms.
Harris Corporation is a leading technology innovator, solving customers' toughest mission-critical challenges by providing solutions that connect, inform, and protect.
Veritas Capital is a leading private equity firm that invests in companies that provide critical products and services to government and commercial customers worldwide, including those operating in aerospace & defense, healthcare, technology, national security, communications, energy, and education.
Houlihan Lokey's Government Services team is a leading M&A advisor to government services and defense technology companies. Since 2015, Houlihan Lokey's Government Services team has advised on 26 transactions valued at over $4 billion.