MELBOURNE, Fla.—Harris Corp. said it signed a definitive agreement to combine its Microwave Communications Division with Stratex Networks Inc.
The new company will be called Harris Stratex Networks Inc.
Terms of the deal call for Harris to contribute its microwave division along with $25 million in cash in exchange for a 56-percent ownership in the combined company. Stratex Networks shareholders will exchange their existing stock tax-free for the remaining 44-percent interest.
The companies said the combined company will have annual revenues of about $600 million. Together the companies have customers for their wireless transmission network solutions in more than 150 countries.
Both companies’ boards of directors have approved the transaction, which is expected to close by January. The deal is subject to shareholder and regulatory approval and customary closing conditions, said the companies.
