Harris Corporation and L3 Technologies to Combine in Merger of Equals to Create a Global Defense Technology Leader
L3 Technologies and Harris Corporation have agreed to merge in an all-stock deal, the two companies announced Sunday, creating a $33.5 billion military technology company.
The combined company will be called L3 Harris Technologies and will be based in Melbourne, Fla., the home of Harris Corporation. Its 12-member board of directors will consist of six members from each company. The deal is expected to close next year, pending a review by the Defense Department.
“L3 Harris Technologies will possess a wealth of technologies and a talented and engaged workforce,” L3 chief executive Chris Kubasik said in a news release. “By unleashing this potential, we will strengthen our core franchises, expand into new and adjacent markets and enhance our global presence.”
Both companies have built military communications empires focused on networking and surveillance capabilities that go in larger defense systems including the F-16, F-18 and F-35 fighter jets.
Harris Corporation handles complex military communications networks for battlefield management and in military aircraft. It is also known for a brand of Stingray cellphone trackers used by U.S. law enforcement, and it is also a leading provider of air traffic management services for the Federal Aviation Administration. The company took a leap forward in 2015 with its $4.75 billion merger with a defense firm called Exelis, and it has made inroads in the space industry thanks to a recent classified contract, executives said in a recent call with investors.
New York-based L3 Technologies’ most visible products are the 360-degree scanners that travelers encounter when they go through airport security, part of a $170 million line of business with the Department of Homeland Security. It also makes night-vision equipment and sensor systems used in military aircraft.
Under the stewardship of Kubasik, a former Lockheed Martin chief operating officer who took the helm at L3 last year, the company has established new business units around next-generation military technologies such as undersea drones.