Defense company L3Harris Technologies has agreed to sell its commercial aviation solutions business to private equity firm TJC L.P. for $800 million, the company announced on Monday.

The deal includes a cash payment of $700 million and an additional $100 million based on the financial performance of the business in 2023 and 2024.

The commercial aviation solutions business provides products and services for pilot training, flight data analytics, avionics and advanced air mobility. It has about 1,450 employees and serves customers in the commercial, regional and business aviation markets.

L3Harris said that the sale is aligned with its capital allocation priorities and that it plans to use the proceeds to repay debt and accelerate its debt leverage objective. The company also said that the transaction will allow it to focus on its core defense and government markets.

The deal is expected to close in the first half of 2024, subject to customary closing conditions and regulatory approvals. Morgan Stanley and Moelis & Co acted as financial advisers to L3Harris, while J.P. Morgan Securities LLC advised TJC L.P.

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