Harris completes acquisition of Exelis

Florida-based Harris Corp. has acquired Exelis, whose Aerostructures and Geospatial Systems businesses include significant composites fabrication operations.

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Harris Corp. (Melbourne, FL, US) reported on May 29 that it has completed its previously announced acquisition of Exelis Inc. Each outstanding share of Exelis common stock converted into the right to receive $16.625 in cash and 0.1025 of a share of Harris common stock. Harris shareholders own 85% of the combined company and Exelis shareholders own 15%. The acquisition includes all Exelis units, including Aerostructures, Geospatial Systems, Electronic Systems, Information Systems and Night Vision and Communications Solutions. 

"The Exelis acquisition is transformative for our company and marks a major milestone in Harris' 120­year history," says William M. Brown, chairman, president and chief executive officer of Harris. "With about $8 billion in combined pro forma revenue, the acquisition creates significantly greater scale, bringing together two engineering­driven companies and workforces with similar cultures that value technology leadership. Together, the two companies' complementary technologies and capabilities strengthen core franchises and provide new opportunities for innovation to solve our customers' most complex challenges."

The transaction is expected to be slightly accretive on a GAAP basis to Harris in the first full year and a significant contributor thereafter. Harris is executing its detailed integration plan to deliver significant and lasting value for all stakeholders. The company expects to provide fiscal 2016 guidance on its fourth quarter fiscal 2015 earnings call.

Harris provides advanced, technology­-based solutions that solve government and commercial customers' mission-critical challenges. The company has approximately $8 billion in annual revenue and about 23,000 employees — including 9,000 engineers and scientists — supporting customers in more than 125 countries.