Harris Corporation to Acquire Exelis Complementary, Adds Scale and Strengthens Core Franchises MELBOURNE, Fla. and MCLEAN, Va., Feb. 6, 2015 Harris Corporation (NYSE:HRS) and Exelis, Inc. (NYSE:XLS) today announced a definitive agreement under which Harris will acquire Exelis in a cash and stock transaction valued at $23.75 per share, or an approximately $4.75 billion enterprise value. The agreement has been unanimously approved by the Boards of Directors of both companies. The transaction is expected to close in June 2015 and is subject to customary closing conditions, including regulatory and Exelis shareholder approval. Under the terms of the transaction, Exelis shareholders will receive $16.625 in cash and 0.1025 of a share of Harris common stock, based on Harris closing price as of Feb. 5, 2015, for each share of Exelis common stock. Upon closing, Harris shareholders will own approximately 85 percent of the combined company, and Exelis shareholders will own approximately 15 percent. On a pro forma basis for the latest twelve months ended Dec. 31, 2014, the combined company would have had more than $8 billion in revenue and about 23,000 employees globally, including 9,000 engineers and scientists. Acquiring Exelis is transformational for Harris, said William M. Brown, chairman, president and chief executive officer of Harris. The combination of the two companies highly complementary core franchises creates a competitively stronger company with significantly greater scale. We are expanding in a market, where we have decades of success and a workforce dedicated to providing our customers with innovative and cost-effective solutions for some of their most complex challenges. This agreement to become part of Harris Corporation represents an exciting new chapter for Exelis, said David F. Melcher, chief executive officer and president of Exelis. Combining the companies not only creates shareholder value, but the commitment to excellence and innovation that both companies share will significantly benefit customers and provide new opportunities for employees. Melcher also noted, Our 2014 was another strong year, and we expect to report revenue of approximately $3.25 billion and adjusted operating margin between 12.4 and 12.5 percent, which is in line with our previous guidance. Exelis indicated that approximately $25 million of its anticipated free cash flow for 2014 shifted into 2015 due to some delayed collections, but that its estimate for 2015 free cash flow is being increased to approximately $275 million. Exelis also expects depreciation and amortization of approximately $106 million in 2014, net debt of $139 million and a net unfunded pension liability of approximately $1.9 billion at the end of 2014. Exelis ended the year with an estimated $2.8 billion in funded backlog. Financial highlights
Based on an expected June 2015 closing, the transaction is expected to be slightly accretive to Harris in the first full year and a significant contributor thereafter. Harris has identified estimated net pre-tax cost synergies from the combination in a range of $100 million to $120 million, with savings expected to achieve annual run-rate in year three. Savings are expected from consolidating headquarters and eliminating public company costs and from operational and functional efficiencies. Harris has secured $3.4 billion of fully committed bridge financing from Morgan Stanley Senior Funding, Inc. and expects to put in place permanent financing in the form of term loans and unsecured bonds prior to closing. Following the transaction, Harris expects to continue to have a solid balance sheet supported by strong free cash flow from the combined business, enabling it to pay down debt rapidly. Integration plan
Harris has developed a detailed execution plan to ensure seamless integration and achieve identified cost synergies. The dedicated integration team will have executive leadership and be comprised of senior members of both organizations. Harris is confident in its ability to effectively combine these two companies and provide the organizational alignment to achieve full strategic value. Advisors
Morgan Stanley & Co. LLC is acting as financial advisor to Harris Corporation and Sullivan & Cromwell LLP is serving as principal legal counsel. J.P. Morgan Securities LLC is acting as financial advisor to Exelis, and Jones Day is serving as legal counsel. Conference call and webcast
As part of Harris previously scheduled conference call today beginning at 8:30 a.m. ET to discuss its second quarter fiscal 2015 financial results (reported in a separate news release today) the management of Harris and Exelis will jointly discuss this announcement. The dial-in numbers for the teleconference are (877) 303-9481 (U.S.) and (760) 666-3582 (International), using participant code 74043536. Please allow at least 10 minutes before the scheduled start time to connect to the teleconference. Participants are encouraged to listen via live webcast. Accompanying presentations as well as the live and archived webcast of the call can be accessed at www.harris.com/webcast/quarterly/2015Q2. An audio replay of the call will be available on the Harris website beginning at approximately 12 p.m. ET on Feb. 6. About Harris Corporation
Harris is an international communications and information technology company serving government and commercial markets in more than 125 countries. Headquartered in Melbourne, Florida, the company has approximately $5 billion of annual revenue and about 13,000 employees including 6,000 engineers and scientists. Harris is dedicated to developing best-in-class assured communications products, systems, and services. Additional information about Harris Corporation is available at harris.com. About Exelis
Exelis is a diversified, top-tier global aerospace, defense, information and services compan
Most recent headlines
09/11/2025
Dalet today announced a transformative leap forward for media operations: Agentic Artificial Intelligence (AI) that unifies the Dalet ecosystem under one natura...
21/10/2025
Globecast, the leading provider of broadcast, media and entertainment managed services, has announced the appointment of G Morgan as Executive Vice President of...
21/10/2025
Visual Data announces the appointment of Maz Al-Jumaili as Senior Vice President, Worldwide Localization, to advance client engagement, strategic partnerships, ...
21/10/2025
As Amazon's Prime Video prepares to launch its coverage of NBA basketball under a major new deal, Grup Mediapro has announced that it is working with the st...
21/10/2025
ATLANTA Good news for consumers using an Atlanta DTH receiver to watch ATSC 3.0: with a new software update, they will be able to blanket their homes with Wi-Fi...
21/10/2025
While recent news has been heavily focused on Hispanic migration into the U.S., The 2025 Hispanic Market Report from Claritas highlights the fact that this gr...
21/10/2025
MAIDENHEAD, UK RWS has hired Michael Wayne as its head of media and entertainment in Los Angeles where he will lead the company's media localization busines...
21/10/2025
Imagine Communications and Rohde & Schwarz today announced a definitive agreement under which Imagine will acquire Pixel Power Limited, a wholly owned subsidiar...
21/10/2025
Atlanta DTH (ADTH) today announced a major update that will expand the functionality of its NEXTGEN TV receiver by enabling gateway capabilities allowing viewer...
21/10/2025
Heartland Video Systems, Inc. (HVS), a premier video systems integration, consulting, and expert ATSC 3.0 implementation firm announces that it has partnered wi...
21/10/2025
QuickLink, the leading provider of award-winning video production and remote guest integration solutions, today announced the appointment of Austin Hinton as it...
21/10/2025
nternet connectivity startup Miri Technologies Inc. will use this week's NAB Show New York as the launch pad for its latest ground-breaking innovation, the ...
20/10/2025
Inside TAMS: How Time-Addressable Media Stores could redefine sports workflows By Paul Markham
Friday, October 17, 2025 - 08:57
Print This Story
A penalty...
20/10/2025
Transformational production: Inside TVN's remote production push for the DFL...
20/10/2025
How NBC Sports Transitioned Stamford Facility to One Format: 1080p HDRMulti-year plan harmonizes workflows, simplifies operationsBy Ken Kerschbaumer, Editorial ...
20/10/2025
NBA on NBC' Studio Production Team Is Ready for Tip-Off With Coast-to-Coast...
20/10/2025
Under pressure: TVN CEO Markus Osthaus considers the German sports broadcasting ...
20/10/2025
(L-R) Maria Dizzia, Carmen Emmi, and Russell Tovey attend the Plainclothes pre...
20/10/2025
In March, we launched Concerts Near You to help listeners find concerts from their favorite artists. Since then, more than 3 million people have used it to disc...
20/10/2025
Em diversas cidades do Brasil, um movimento tem se fortalecido para celebrar o poder, a beleza e a profundidade da criatividade negra. O Dia AMPLIFIKA, agora em...
20/10/2025
In cities across Brazil, a movement is growing that celebrates the power, beauty, and depth of Black creativity. AMPLIFIKA Day, now in its fifth edition, return...
20/10/2025
Airborne Early Warning and Control aircraft rendering...
20/10/2025
DENVER and MUNICH Imagine Communications today announced its plans to acquire Pixel Power Ltd., a wholly owned subsidiary of Rohde & Schwarz. Financial terms of...
20/10/2025
LOS ANGELES G Morgan has joined Globecast, a provider of broadcast, media and entertainment managed services, as executive vice president of sales, Globecast Am...
20/10/2025
PLYMOUTH, Wisc. Heartland Video Systems and Zixi have partnered to enable broadcast-quality live video delivery over any IP network....
20/10/2025
A. R. Rahman on Facing Fear and Finding the Divine In an interview with Berklee President Jim Lucchese, the Oscar-winning composer reflects on how courage and...
20/10/2025
Monday 20 October 2025
To view this content, please enable our use of cookies. ...
20/10/2025
Rohde & Schwarz transfers Pixel Power to Imagine Communications Companies work collaboratively to ensure continuity and ongoing support for existing customers...
20/10/2025
RT 's Prime Time is set to host the final Presidential Election Debate this Tuesday night, October 21, providing an opportunity to hear directly from Irelan...
20/10/2025
NVIDIA and Google Cloud are expanding access to accelerated computing to transform the full spectrum of enterprise workloads, from visual computing to agentic a...
19/10/2025
Back to All News
Sins of Kujo' Comes to Life in New Live-Action Series Set for Spring 2026
Entertainment
19 October 2025
GlobalJapan
Link copied to cl...
18/10/2025
New England Sports Network (NESN) has chosen Harmonic, working with Astound Business Solutions, as its enterprise technology partner to transform primary distri...
18/10/2025
NEW ORLEANS, La. In the run-up to the start of the NBA season, WVUE-TV and Gray Local Media have announced a deal with DirecTV that will greatly expand access t...
18/10/2025
Berklee Celebrates 40 Years of the Fall Together Concert Faculty composers Bob Pilkington and Greg Hopkins are among the featured artists for this year's ...
17/10/2025
NEP Group Receives New Equity Investment From 26North Partners LP, Co-InvestorsCarlyle remains the largest shareholder as the company prepares for the futureBy ...
17/10/2025
Apple Lands Five-Year Deal for F1 Distribution in the U.S.Besides airing on Apple TV, the sport will be amplified on other Apple servicesBy Ken Kerschbaumer, Ed...
17/10/2025
SVG Sit-Down: Marshall Electronics' Bernie Keach on the Future of PTZ Camera...
17/10/2025
L2 Productions' REMI Facility in Austin Can Produce Content From AnywhereMusic festivals, sports events are produced via flypacks and remote control roomsBy...
17/10/2025
By Lucy Spicer
One of the most exciting things about the Sundance Film Festival...
17/10/2025
(L-R) Christopher Meyer, Addison Timlin, Cooper Raiff, Lili Reinhart, Alyah Chan...
17/10/2025
M sica e arte se uniram em uma noite especial na semana passada na ZIV Gallery, ...
17/10/2025
Music and art came together for one special night last week at ZIV Gallery, an i...
17/10/2025
Spotify and FC Barcelona are extending our partnership through 2030, continuing a collaboration that's redefining how fans, players, and artists connect. Th...
17/10/2025
MURRIETA, Calif. The Sports Fishing Championship (SFC) has deployed DigitalGlue's creative.space storage platform to streamline video production by centrali...
17/10/2025
BELLEVUE, Wash. Football continued to cement its reputation as a bulwark of TV advertising in Q3 2025 with new data from iSpot that showed both the NFL and coll...
17/10/2025
The Sports Fishing Championship (SFC), the premier competitive saltwater fishing series, has transformed its production workflow by adopting creative.space, the...
17/10/2025
QuickLink, a leading provider of award-winning multi-camera video productions and remote contribution solutions, announces the release of StudioPro Version 4, ...
17/10/2025
Although the annual Grammy Awards celebration is best known for recognizing achievements in the recording industry, the show often proves a visual spectacle as ...
17/10/2025
OpenDrives, Inc., a leading provider of software-defined data storage and data services, has promoted Alex Dunfey to Chief Technology Officer (CTO) from his for...
Harris Corporation to Acquire Exelis Complementary, Adds Scale and Strengthens Core Franchises MELBOURNE, Fla. and MCLEAN, Va., Feb. 6, 2015 Harris Corporation (NYSE:HRS) and Exelis, Inc. (NYSE:XLS) today announced a definitive agreement under which Harris will acquire Exelis in a cash and stock transaction valued at $23.75 per share, or an approximately $4.75 billion enterprise value. The agreement has been unanimously approved by the Boards of Directors of both companies. The transaction is expected to close in June 2015 and is subject to customary closing conditions, including regulatory and Exelis shareholder approval. Under the terms of the transaction, Exelis shareholders will receive $16.625 in cash and 0.1025 of a share of Harris common stock, based on Harris closing price as of Feb. 5, 2015, for each share of Exelis common stock. Upon closing, Harris shareholders will own approximately 85 percent of the combined company, and Exelis shareholders will own approximately 15 percent. On a pro forma basis for the latest twelve months ended Dec. 31, 2014, the combined company would have had more than $8 billion in revenue and about 23,000 employees globally, including 9,000 engineers and scientists. Acquiring Exelis is transformational for Harris, said William M. Brown, chairman, president and chief executive officer of Harris. The combination of the two companies highly complementary core franchises creates a competitively stronger company with significantly greater scale. We are expanding in a market, where we have decades of success and a workforce dedicated to providing our customers with innovative and cost-effective solutions for some of their most complex challenges. This agreement to become part of Harris Corporation represents an exciting new chapter for Exelis, said David F. Melcher, chief executive officer and president of Exelis. Combining the companies not only creates shareholder value, but the commitment to excellence and innovation that both companies share will significantly benefit customers and provide new opportunities for employees. Melcher also noted, Our 2014 was another strong year, and we expect to report revenue of approximately $3.25 billion and adjusted operating margin between 12.4 and 12.5 percent, which is in line with our previous guidance. Exelis indicated that approximately $25 million of its anticipated free cash flow for 2014 shifted into 2015 due to some delayed collections, but that its estimate for 2015 free cash flow is being increased to approximately $275 million. Exelis also expects depreciation and amortization of approximately $106 million in 2014, net debt of $139 million and a net unfunded pension liability of approximately $1.9 billion at the end of 2014. Exelis ended the year with an estimated $2.8 billion in funded backlog. Financial highlights
