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The Mobius aircraft system seen here, which can be pilot or remote, was designed by the L3 defense technology company, which announced Sunday a merger with another major defense company, Harris Corporation.
Harris and L3 Technologies, two US companies specializing in military technology and communications, announced their merger on Sunday, giving birth to a giant in the sector.
The "peer-to-peer" merger will be achieved through an exchange of shares, according to a joint statement. L3 shareholders will receive 1.30 Harris shares for each L3 share.
Once the merger is finalized (the boards of directors of both companies have approved it, but government approval is still required), Harris shareholders will control 54% of the merged company's capital, while that L3 will hold the remaining 46%.
Harris has recently been selected to supply the next-generation US Army F-35 electronic "brain," a versatile fighter-bomber, as well as more than 1,500 portable communications systems for the military. .
Harris also supplies US Special Forces units.
The company had annual sales of $ 6.2 billion for the fiscal year ended in June. It employs over 17,000 people and has offices in approximately 100 countries, according to its website.
L3, also a major Pentagon supplier, has 31,000 employees. Its annual business figure in 2017 was $ 9.6 billion.
The new entity, dubbed L3 Harris Technologies Inc., will be the sixth largest US defense company and one of the ten largest in the world, with 48,000 employees and customers in 100 countries.
According to the release, the new company expects net sales of $ 16 billion for calendar year 2018, pre-tax income of $ 2.4 billion and free cash flow of $ 1.9 billion.
The transaction is expected to generate synergies generating $ 500 million in savings, or $ 300 million by year three, through the consolidation of the head office, the elimination of layoffs and other measures.
L3 Harris Technologies plans to invest $ 450 million in cash during this period by integrating the two companies.
The merger is expected to be completed by mid – 2019. The resulting company will be based in Melbourne, Florida, at Harris.
Each company will contribute six members to the new 12-member board.
For the first two years, Harris President and CEO William M. Brown will serve as President and CEO of the new company, while L3 CEO Christopher Kubasik will serve as Vice President and Chief Executive Officer. of exploitation. Kubasik will later become President and Chief Executive Officer, while Brown will become Executive Chairman.
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