Sony Digital Rapids Pixel Power calrec Sony

Harris Corporation and L3 Technologies to Combine in Merger of Equals

14/10/2018

Combination creates a global defense technology leader with a broad portfolio of capabilities and increased scale to address evolving customer needs

Complementary businesses with a shared culture of innovation and operational excellence to accelerate growth and improve margins

$500M of annual gross pre-tax cost synergies in year 3; $300M net of savings returned to customers

Cash EPS accretive in first full year post close; targeting $3 billion in free cash flow by year 3

Combined company to be named L3 Harris Technologies and headquartered in Melbourne, Florida

Harris Corporation (NYSE:HRS) and L3 Technologies, Inc. (NYSE:LLL) have agreed to combine in an all stock merger of equals to create a global defense technology leader, focused on developing differentiated and mission critical solutions for customers around the world. Under the terms of the merger agreement, which was unanimously approved by the boards of directors of both companies, L3 shareholders will receive a fixed exchange ratio of 1.30 shares of Harris common stock for each share of L3 common stock, consistent with the 60-trading day average exchange ratio of the two companies. Upon completion of the merger, Harris shareholders will own approximately 54 percent and L3 shareholders will own approximately 46 percent of the combined company on a fully diluted basis.

The combined company, L3 Harris Technologies, Inc., will be the 6th largest defense company in the U.S. and a top 10 defense company globally, with approximately 48,000 employees and customers in over 100 countries. For calendar year 2018, the combined company is expected to generate net revenue of approximately $16 billion, EBIT of $2.4 billion and free cash flow of $1.9 billion.

Harris Chairman, President and Chief Executive Officer, William M. 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. Integration planning is already underway, and from our extensive experience with integration, we are confident in our ability to realize $500 million of annual gross cost synergies and $3 billion of free cash flow by year 3.

L3 Chairman, President and Chief Executive Officer, Christopher E. Kubasik said, This merger creates greater benefits and growth opportunities than either company could have achieved alone. The companies were on similar growth trajectories and this combination accelerates the journey to becoming a more agile, integrated and innovative non-traditional 6th Prime focused on investing in important, next-generation technologies. L3 Harris Technologies will possess a wealth of technologies and a talented and engaged workforce. By unleashing this potential, we will strengthen our core franchises, expand into new and adjacent markets and enhance our global presence.

Strategic Benefits of the Merger

Increased scale with a well-balanced portfolio of complementary franchises: The combined portfolio brings depth and balance of relationships across a wide range of customers, in both the U.S. and international markets. Increased scale will enable the combined company to be more cost competitive, expand capabilities to provide end-to-end solutions across multiple domains of air, sea, land, space and cyber, enhance leadership in RF and spectrum technologies and establish a leading platform-agnostic supplier and integrator.

Shared culture of innovation and operating philosophy creates stronger platform to drive growth: Both L3 and Harris are technology driven organizations with significant R&D investment and a combined workforce of approximately 22,500 engineers and scientists. The combined company plans to accelerate investment in select technologies to expand leadership in key strategic domains including national security. By leveraging a common operating philosophy of continuous improvement and operational excellence, L3 Harris Technologies will continue to drive operating margin improvement.

Meaningful value creation opportunity: The combination is expected to generate approximately $500 million of annual gross pre-tax cost synergies, or $300 million net of savings returned to customers, in year 3. The savings will come from reducing direct and indirect spend, rationalizing footprint, consolidating corporate and segment headquarters, establishing a common shared services platform for IT and finance and reducing other overhead costs. The company is expected to invest approximately $450 million cash to achieve the synergies over the next 3 years.

Strong balance sheet with significant cash flow generation: On a calendar year 2018 basis, L3 Harris Technologies is expected to have approximately $16 billion of revenue, $2.4 billion of EBIT, and $1.9 billion of free cash flow. The combined company will target $3 billion in free cash flow by year 3, driven by organic growth, cost synergies, working capital improvements and capital expenditure efficiencies. L3 Harris Technologies will be well capitalized with a strong balance sheet and a leverage ratio of 2.2x net debt to trailing twelve months EBITDA. The combined company will remain committed to maintaining an investment grade credit rating and a dividend payout consistent with each company's current practice and deploying excess cash toward share repurchases, including up to $2 billion in share repurchases in the 12 months post-closing.

Governance and Leadership

L3 Harris Technologies will be headquartered in Melbourne, Florida and led by a highly experienced and proven leader
LINK: https://www.harris.com/press-releases/2018/10/harris-corporation-and-l...
See more stories from harris

Most recent headlines

22/01/2019

Powerball and Powerball Plus results for Tuesday, 22 January 2019

It's Tuesday night and that can only mean one thing; cash dollar bills (not really) are ready to be won in the Powerball draw. Powerball and Powerball Plus...

22/01/2019

Former Western Cape Premier Peter Marais joins FF Plus to fight for Afrikaans'

The leader of the FF Plus, Dr Groenewald announced on 22 January that Peter Mara...

22/01/2019

Things to consider when buying your childhood home

The trend towards multigenerational living is gaining momentum, young adults are now not only moving back in with their parents but increasingly, buying the hom...

22/01/2019

Minnetonka Announces AudioTools Voice Dialogue Intelligibility Plug-In

Minnetonka Announces AudioTools Voice Dialogue Intelligibility Plug-In January 22, 2019 CLEVELAND, OHIO (January 22, 2019) The Telos Alliance TV Solutions...

22/01/2019

Calrec Gets a Four Chair Turn from The Voice A1, Mike Abbot

Mike Abbott, established A1 mixer and owner of All Ears Inc., has had an extensive career mixing audio for some of the most popular TV and high-profile awards s...

22/01/2019

Oscars: Roma, The Favourite lead nominees

LOS ANGELES - The nominees for the 91st Academy Awards were announced this morning, with Roma and The Favorite leading all films with 10 nominations each. Roma,...

22/01/2019

Yahoo Finance Chooses Ross Video for Live Streaming Service

Ottawa, Canada, 21st January 2019 - Earlier this month, Yahoo Finance launched eight hours of live streaming financial news coverage. It's the latest exampl...

22/01/2019

Revenues from pay-TV fiber / xDSL grow by 15%

Revenues from pay-TV fiber / xDSL grow by 15% A final del segundo trimestre de 2018, 6,64 millones de abonados contaban con televisi n de pago. Casi 9 de cada ...

22/01/2019

Angel Gomez prepares his debut in Spain along with the Voices

Angel Gomez prepares his debut in Spain along with the Voices Spanish director prepares its international release on par with the film Behind based on his awar...

22/01/2019

NEC launches a videowall with powerful capabilities calibration with SpectraView

NEC launches a videowall with powerful capabilities calibration with SpectraView La nueva l nea, integrada por diez modelos, cuenta con motor integrado Spectra...

22/01/2019

Italian justice condemns Vimeo remove all videos of Mediaset and compensate the group with 8.5 million euros

Italian justice condemns Vimeo remove all videos of Mediaset and compensate the ...

22/01/2019

The government will allocate 50 million euros to the new digital dividend

The government will allocate 50 million euros to the new digital dividend El proyecto de Presupuestos Generales del Estado prev una partida de 50 millones que...

22/01/2019

Telespan starts a new line with international big-budget co-productions

Telespan starts a new line with international big-budget co-productions La compa a del grupo V rtice 360 adquiere los derechos de la adaptaci n audiovisual de...

22/01/2019

green light to the purchase of Red Hat by IBM

green light to the purchase of Red Hat by IBM With this transaction, IBM intends to compete with Amazon, Microsoft, Google and Amazon in the business of data m...

22/01/2019

Full range of high brightness projectors Panasonic will use laser technology

Full range of high brightness projectors Panasonic will use laser technology Con el cese de la fabricaci n de la gama de proyectores PT-DZ21K, Panasonic ha anu...

22/01/2019

Platinum Latin American Film Awards return to the Riviera Maya

Platinum Latin American Film Awards return to the Riviera Maya The gala will be held on May 12 at the Teatro Gran Tlachco of Xcaret (Riviera Maya, Mexico). TNT...

22/01/2019

The 47th Huesca Film Festival starts receiving short

The 47th Huesca Film Festival starts receiving short En 2018 se recibieron m s de 2.000 trabajos de 87 pa ses para sus tres concursos: Internacional, Iberoamer...

22/01/2019

Spanish Television begins production of a new season of The Paisana

Spanish Television begins production of a new season of The Paisana Tras las primeras temporadas de la adaptaci n del formato dan s Comedy on the edge', T...

22/01/2019

Madrid bid to boost tourism audiovisual production

Madrid bid to boost tourism audiovisual production Landing-Madrid, un evento organizado por Turismo del Ayuntamiento de Madrid conjuntamente con el CIFFT (Inte...

22/01/2019

Audiovisual authors call the principle of proportional remuneration in the digital single market

Audiovisual authors call the principle of proportional remuneration in the digit...

22/01/2019

The Portuguese Foundation for Science and Technology integrates a Dante network

The Portuguese Foundation for Science and Technology integrates a Dante network LA FCT portuguesa despliegue una red Dante de Audinate para la puesta en marcha...

22/01/2019

In two years, all radios in cars must receive signals from DAB / DAB + digital radio

In two years, all radios in cars must receive signals from DAB / DAB digital r...

22/01/2019

Euskaltel launches first in Spain Amazon Prime Video on your decoder

Euskaltel launches first in Spain Amazon Prime Video on your decoder M s del 80% de los usuarios de televisi n del Grupo Euskaltel con decodificadores 4K Andro...

22/01/2019

Speakers smart device will be further growth this year

Speakers smart device will be further growth this year A finales de 2019 el n mero de altavoces conectados a Internet con asistentes digitales integrados podr ...

22/01/2019

Lolo Rico dies, the transgressor that connected with younger on TV treating them as adults

Lolo Rico dies, the transgressor that connected with younger on TV treating them...

22/01/2019

The Awards recognize Feroz The Kingdom, Champions and Who will sing film and Faria and Arde Madrid on TV

The Awards recognize Feroz The Kingdom, Champions and Who will sing film and Far...

22/01/2019

The RealLaser Christie gives color to the first multiplex with pure laser Hualien (Taiwan)

The RealLaser Christie gives color to the first multiplex with pure laser Hualie...

22/01/2019

Mediapro Labs receives more than two hundred proposals in its first month

Mediapro Labs receives more than two hundred proposals in its first month A esta iniciativa de Mediapro se han presentado proyectos de web series, series para ...

22/01/2019

QuickLink Studio allows remote IP audio commentary track in a prestigious pan-European football championship

QuickLink Studio allows remote IP audio commentary track in a prestigious pan-Eu...

22/01/2019

Mediapro 2022 Qatar World Cup wins in Spain

Mediapro 2022 Qatar World Cup wins in Spain Crear un canal en Espa a con una programaci n 24/7 dedicada al Mundial de f tbol en 2022. El acuerdo con Mediapro ...

22/01/2019

Spanish Television presented at NATPE 2019 their latest productions of fiction

Spanish Television presented at NATPE 2019 their latest productions of fiction Del 22 al 24 de enero, TVE dar a conocer en Miami algunas de sus ltimas propue...

22/01/2019

Acorn TV: the new streaming platform that brings Spains largest selection of series of UK, Ireland, Canada and Australia

Acorn TV: the new streaming platform that brings Spains largest selection of ser...

22/01/2019

Hispasat and distributed in EMEA Media Broadcast channel in Ultra High Definition Fun Box

Hispasat and distributed in EMEA Media Broadcast channel in Ultra High Definitio...

22/01/2019

Zixi support the protocol for AWS Elemental Medialive and Mediaconnect

Zixi support the protocol for AWS Elemental Medialive and Mediaconnect Los clientes de Amazon Web Services podr n as beneficiarse de la tecnolog a de Zixi par...

22/01/2019

25 Words or Less Sold in 75% of U.S.

Twentieth Television has sold new half-hour game show 25 Words or Less, hosted by Meredith Vieira, in 75% of the county, said Ken Lawson, senior vice president ...

22/01/2019

Michael Strahan Looks to Bring The Money Drop to U.S.

Endemol Shine North America and Michael Strahan's SMAC Entertainment are partnering to develop a U.S. version of global hit The Money Drop, ESNA announced T...

22/01/2019

NBC, Telemundo Stations Do Ratings Deal With Comscore

NBCUniversal Owned Television Stations have signed new, expanded deal with Comscore, which will provide audience data to the NBC and Telemundo TV stations. Rel...

22/01/2019

Freeview now available on-the-go, with the launch of its new mobile app

Whether you're looking to catch up with EastEnders on your commute, see what Piers Morgan is angry about on Good Morning Britain, or discover new shows such...

22/01/2019

Christie Lites North America Invests in Kinesys

Christie Lites North America Invests in Kinesys posted: 22/01/2019 Howard Morrison, Mark Drifter Delogues, Timorthy Anthonippillai, Kennox Hylton and Ja...

22/01/2019

Harman appoints Ertekin Electronic as new...

AV distributor Ertekin Electronic will distribute Harman products exclusively in Turkey. The agreement covers the JBL Professional, AMX, Martin, Soundcraft, AKG...

22/01/2019

Shooting Partners and...

The two sister companies have announced their merger under the Anna Valley brand three years after their parent, Shooting Partners Group underwent a management ...

22/01/2019

EAW co-founder Kenton Forsythe returns to the...

EAW's cofounder and former vice president of strategic engineering will return to the loudspeaker manufacturer just months after the company was bought by R...

22/01/2019

SDVoE Alliance training...

The SDVoE Alliance has outlined a programme of training sessions that it will host at ISE 2019 in Amsterdam, February 5 to 8. Its AV-over-IP focused programme...

22/01/2019

New hires to help push Mersive in EMEA

[L-R] Cyril Matter, Ramy Alam and Rosario Marseglia Collaboration company Mersive Technologies has bolstered its EMEA team with two regional sales managers and...

22/01/2019

Stage Tec delivers 6 AURUS platinum consoles to Italy for RAI

Stage Tec delivers 6 AURUS platinum consoles to Italy for RAI posted: 22/01/2019 StageTec's AURUS platinum in the RAI OB truck The Berlin-based manufac...

22/01/2019

4K Handheld CamCorder Promises High Quality Images and Advanced Connectivity

4K Handheld CamCorder Promises High Quality Images and Advanced Connectivity posted: 22/01/2019 Panasonic has introduced a new handheld camcorder, the fir...

22/01/2019

Dean Street gains a halo

New 16-suite offline facility is due open in April Jenny Priestley 4 hours ago New 16-suite offline facility is due open in April target=_blank title=S...

22/01/2019

Sony to move European operations to the Netherlands in case of no-deal Brexit

Takes effect on 29th March Dan Meier 4 hours ago Takes effect on 29th March target=_blank title=Share on LinkedIn class=share-linkedin> Takes effect ...

22/01/2019

Tamron Hall Is Ready to Return to Daytime

Tamron Hall Tamron Hall is coming to daytime TV this fall with a new one-hour talker that will be all about having complex conversations with guests over a wid...

22/01/2019

Geddie Named Executive Producer of Hall Talk Show

Bill Geddie has been named executive producer of Tamron Hall's new syndicated daytime talk show being distributed by the Walt Disney Direct-to-Consumer and ...