Harris Corporation is merging with New York City-based L3 Technologies.
The two companies announced on Sunday that they will combine in what is called “an all stock merger of equals.”
Harris, which is headquarters in Melbourne, Florida, is a provider of communications systems and electronics for military and civilian use. It employs about 3,700 people in the Rochester area.
L3 Technologies, also provides communications and electronic systems for the military, homeland security and commercial aviation customers. It has about 31,000 employees worldwide.
Officials say the combined company, L3 Harris Technologies, Inc., will be the 6th largest defense company in the U.S. with about 48,000 employees in more than 100 countries.
Harris Chairman, President and Chief Executive Officer, William Brown said, “This transaction extends our position as a premier global defense technology company that unlocks additional growth opportunities and generates value for our customers, employees and shareholders. Combining our complementary franchises and extensive technology portfolios will enable us to accelerate innovation to better serve our customers, deliver significant operating synergies and produce strong free cash flow, which we will deploy to drive shareholder value.”
Brown says that “integration planning” is already underway, and he says the two companies are confident in their ability to realize $500 million worth of annual synergies.
An official with Harris Corporation in Rochester tells WXXI News that Harris expects to continue to maintain its strong presence in Rochester. He says that “the merger creates opportunities for growth within the region and expanding career opportunities for our existing employees here.”
U.S. Senator Chuck Schumer says he spoke with Harris Corporation CEO William Brown following news about the Harris-L3 Technologies merger. The New York Democrat says he pushed for and received assurances that Rochester’s Harris Corporation workforce would not be reduced due to the merger with L3. Schumer says the merger has the potential to bring additional jobs to Rochester.
L3 Technologies has some operations in Victor.
The combined company is expected to generate net revenue of approximately $16 billion. William Brown will serve as chairman and CEO and Christopher Kubasik as vice chairman, president and chief operating officer for the first two years following the closing of the deal. In the third year, Brown will transition to executive chairman and Kubasik to CEO. At that point, Kubasik will be chairman and CEO.
