M&A: Gov IT Division for CIO-SP3 and VA T4 Prime Acquired
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“Harris Corporation (NYSE:HRS) today announced a definitive agreement under which an affiliate of Veritas Capital, a leading private equity investment firm, will acquire Harris’ government IT services business for $690 million in cash. Proceeds from the transaction will be used to support the company’s capital allocation strategy, including pension pre-funding and share repurchases. The transaction is subject to regulatory review and other customary closing conditions and is expected to close before the end of fiscal 2017…”
G2X TAKE: Announced last Friday, the $690M acquisition of a current CIO-SP3 Prime and one of the more successful VA T4 (the predecessor to T4NG) primes by a private equity firm will have many firms examining this group a bit closer to evaluate impact and opportunity.
Harris maintains a broad Federal Health footprint that extends across HHS, Military Health and VA, but also across the Federal sector, both civilian and DoD. Health IT firms looking to add key vehicles and programs are likely to reach out to inquire about future focus and any willingness to carve off certain pieces.
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