The two contractors will create a $33.5 billion company.
Two large government contractors, L3 Technologies and Harris Corp., will merge to create a $33.5 billion company.
The companies announced the all-stock deal Oct. 14, with the resulting new company called L3 Harris Technologies. The combined company will be based in Melbourne, Fla.—where Harris Corp. is headquartered—and would become the sixth largest defense contractor with about $16 billion in revenue and 48,000 employees worldwide.
Per legal statute, the deal will be reviewed by the Defense Department and should it be approved, is expected to close next year.
“This merger creates greater benefits and growth opportunities than either company could have achieved alone,” said L3 Chairman and Chief Executive Officer Christopher Kubasik, in a statement. “The companies were on similar growth trajectories and this combination accelerates the journey to becoming a more agile, integrated and innovative non-traditional sixth prime focused on investing in important, next-generation technologies.”
Both L3 and Harris Corporation have numerous mission-critical contracts with the U.S. military, especially in communications, from spacecraft to battlefield and surveillance technologies.
The new company will be led by William Brown, Harris Corporation’s chief executive officer, for two years following the merger’s close. After that, Kubasik will take the reins.