The Harris Stratex division of Harris Corp. is being spun-off by the parent as an independent though cross-owned entity. Stratex is a wireless communications provider in the mobile phone, public safety and corporate network markets. The parties expect the date of severance to be May 27.
Shareholders of Harris stock recorded on May 13 will receive an estimated 0.24 of new Harris Stratex Networks for each share of Harris Corp. that they own.
Harris Corporation Chairman/President/CEO Howard Lance said the company board looked at several alternatives and “determined that the spin-off dividend is in the best interest of Harris Corporation shareholders.”
Concerning the new company, he added: “As the largest independent provider of wireless transmission solutions, the company is well positioned for long term success in serving the global transition to IP networks, the evolution to 4G technologies, and the continuing expansion of wireless infrastructure in emerging markets.”
In December 2008, Harris said it was evaluating strategic alternatives related to Harris Stratex Networks, which was formed in 2007, through the combination of Harris Corporation’s Microwave Communications Division and Stratex Networks, Inc.