Andrew Corp. has agreed to sell its Satellite Communications business to Resilience Capital Partners, a private equity firm.
The operation employs 520 people and accounts for about 5% of company revenue, or $104 million last year. Andrew’s Satellite Communications Group provides antennas from 46 centimeters to 9.4 meters and radio frequency electronics.
The new company will be called ASC Signal Corp.
Andrew, said its satellite business was underperforming, gets $39 million in potential cash consideration, including $9 million now and possibly more later based on financial performance of the business, in addition to an ownership stake of 17 to 20% in the new company ASC Signal.
Andrew officials say they’re trying to move away from unprofitable businesses and markets and get into new and more profitable markets like military satellite communications, electronics and mobile platforms.