Finance
L3 Technologies, Harris Corp agree to deal creating $33.5 billion defense giant
L3 Technologies and Harris Corporation rallied Monday morning after the two companies agreed to merge in an all-stock deal. The new company will have a market capitalization of $33.5 billion, making it the sixth-largest defense company in the US, according to the company release.
Following the news, L3 Technologies climbed 4.9% and Harris Corporation jumped 5.4%.
Under the terms of the merger agreement, each L3 Technologies shareholder will receive 1.30 Harris Corp shares for each L3 share they owned, the company said. After completion of the deal, Harris shareholders will own approximately 54% of the company while L3 shareholders will own the remaining 46%.
The combined company, called L3 Technologies, is expected to generate net revenue of approximately $16 billion, earnings before interest and taxes of $2.4 billion, and free cash flow of $1.9 billion. The company will employ 48,000 people and will have its headquarters in Melbourne, Florida, where Harris is based.
“This merger creates greater benefits and growth opportunities than either company could have achieved alone,” said Christopher E. Kubasik, L3 chairman, president and chief executive officer.
“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.”
-
Business7 days ago
API startup Noname Security nears $500M deal to sell itself to Akamai
-
Entertainment6 days ago
NASA discovered bacteria that wouldn’t die. Now it’s boosting sunscreen.
-
Entertainment7 days ago
How to watch ‘Argylle’: When and where is it streaming?
-
Business6 days ago
Tesla drops prices, Meta confirms Llama 3 release, and Apple allows emulators in the App Store
-
Business5 days ago
TechCrunch Mobility: Cruise robotaxis return and Ford’s BlueCruise comes under scrutiny
-
Entertainment5 days ago
‘The Sympathizer’ review: Park Chan-wook’s Vietnam War spy thriller is TV magic
-
Business4 days ago
Tesla layoffs hit high performers, some departments slashed, sources say
-
Business4 days ago
Meta to close Threads in Turkey to comply with injunction prohibiting data-sharing with Instagram