Harris Corp. completed its previously announced acquisition of Exelis in a stock transaction valued at $4.6 billion, Harris said on May 29. Exelis, which ITT Corp. spun off as an independent company in 2011, now is a wholly owned subsidiary of Harris.
The combined company has annual revenue of $8 billion, 23,000 employees and supplier positions in U.S. government space, weather, air traffic management and military tactical communications systems. Harris shareholders own 85 percent of the company; Exelis shareholders own 15 percent.
In the civil government arena, Harris now oversees major components of the Federal Aviation Administration’s NextGen ATC modernization effort. These include the automatic dependent surveillance-broadcast (ADS-B) ground radio network that Exelis developed, and the Data Communications, National Airspace System Voice System and FAA Telecommunications Infrastructure programs that Harris leads.
Exelis also brings with it 240 part numbers on the three variants of the F-35 Lightning II fighter. The two companies have delivered more than one million tactical radios to world militaries.
“The Exelis acquisition is transformative for our company and marks a major milestone in Harris’ 120-year history,” said William Brown, Harris chairman, president and CEO. Both are engineering-driven companies with complementary technologies and capabilities, he added.
Harris, which has corporate headquarters in Melbourne, Florida, said it is in the midst of planning how the combined company will be organized by divisions and segments. It is also in “active discussion with state and local officials” regarding its headquarters location.