Tyco Deal Offers Big Prospects In The Long Term

On April 17 US international communications major Harris Corporation confirmed that it would pay US$675mn to acquire the Wireless Systems unit of Tyco Electronics, in a move that CFW believes will act as a major boost to the firm's expansion into the US$9bn market for land mobile radio (LMR) systems. Harris produces wireless equipment, electronic systems, and both terrestrial and space borne antennas for use by governmental and commercial clients, while Wireless Systems (formed in 1999 and consolidated through the 2001 acquisition of ComNet Ericsson) provides communication systems for clients in law enforcement and the emergency services, boasting US$461mn in sales in 2008. After the deal, it will operate under Harris' RF Communications division, which provides secure voice and data communications equipment to military and government agencies, and with major synergies and opportunities for cross-selling, Harris is confident that the unit should be 'a significant contributor' to earnings by fiscal year 2011.

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