- Published: 31 March 2009
Harris Stratex Networks to Become Fully Independent
Harris Corporation to spin-off its controlling interest
Harris Stratex Networks, Inc. (Nasdaq: HSTX), a leading specialist in backhaul solutions for mobility and broadband networks, today announced that the Harris Board of Directors has approved the spin-off to Harris shareholders of its majority position in the company.
"We look forward to the next chapter of Harris Stratex Networks as a fully independent company," said Harald Braun, Harris Stratex president and CEO. "There is no question that the future of broadband wireless communications presents us with significant growth opportunities.
Coupled with the significant progress we have made across our business, we believe that our ability to strengthen our position in this market space and execute on our strategy is now enhanced as an independent company. The decision by the Harris Corporation board to pursue an orderly distribution of its Harris Stratex shares will present to a broader investor base the opportunity to unlock greater shareholder value over time.
"We continue to execute our growth strategy by making the game-changing transition to IP networks. In addition, we recently acquired Telsima Corporation to accelerate our expansion into new and emerging markets and to enhance our 4G networking strategy," added Braun.
The distribution of the approximately 56 percent of the outstanding shares of Harris Stratex Networks owned by Harris Corporation, 32.9 million shares, will take place in the form of a taxable pro rata stock dividend payable on May 27, 2009, to Harris Corporation shareholders of record at the close of business on May 13, 2009, the record date for the spin-off dividend. Harris Corporation shareholders will receive approximately .24 of a share of Harris Stratex Networks for every share of Harris Corporation common stock they own on the record date. The final distribution ratio will be set on the record date by dividing the number of Harris Stratex Networks shares to be distributed in the spin-off by the number of Harris Corporation shares outstanding at the close of business on the record date.
Harris Corporation announced December 8, 2008, that it was evaluating strategic alternatives related to Harris Stratex Networks, which was formed January 26, 2007, through the combination of Harris Corporation's Microwave Communications Division and Stratex Networks, Inc.