| Harris Corp. and Stratex Networks Inc. said Tuesday they agreed to combine Harris' microwave communications unit with Stratex, in a deal that give Harris a majority stake in the new company. Melbourne, Fla-based Harris, which sells a variety of communications products to government and commercial customers, will contribute its microwave division and $25 million in cash and get a 56 percent ownership stake in the combined company. Shareholders of San Jose, Calif.-based Stratex will own 44 percent. The combined company will have annual revenue of about $600 million and be named Harris Stratex Networks Inc., the companies said in a joint statement. Both boards have approved the deal, which is expected to close in the next four months. The deal is still subject to Stratex shareholder approval and regulatory approvals. The new company is expected to be listed on the Nasdaq. Shares of Stratex rose 37 cents, or 10 percent, to close at $4.04 on the Nasdaq and added an additional 31 cents, to $4.35, in after-hours trading. Shares of Harris rose 88 cents, or 2 percent, to close at $44.28 on the New York Stock Exchange. biz.yahoo.com |
