Harris to sell government IT services business

Harris Corp. announced today it has agreed to sell its government IT services business to an affiliate of private-equity firm Veritas Capital for $690 million.

The Herndon-based services unit provides IT and engineering services to government agencies, including NASA. It was expected to earn about $1.1 billion in fiscal year 2017 revenue.

Under the deal, Harris will maintain its air traffic management franchise, which primarily works for the Federal Aviation Administration.

Since purchasing Exelis in 2015, Harris has been reshaping its business. Last year, the company divested its CapRock Communications unit as well as its aerostructures business.

Harris becomes only the latest prime contractor to divest its IT services work, which has been viewed as less profitable. Lockheed Martin last year divested its IT services business, merging it with Leidos; while L3 Technologies sold its services unit to CACI International.