Creates Significantly Greater Scale and Strengthens Core Franchises
MELBOURNE, Fla. — Harris Corporation (NYSE:HRS) today completed its previously announced acquisition of Exelis Inc. (NYSE:XLS). Each outstanding share of Exelis common stock converted into the right to receive $16.625 in cash and 0.1025 of a share of Harris common stock. Harris shareholders own 85 percent of the combined company and Exelis shareholders own 15 percent.
“The Exelis acquisition is transformative for our company and marks a major milestone in Harris’ 120-year history,” said William M. Brown, chairman, president and chief executive officer of Harris. “With about $8 billion in combined pro forma revenue, the acquisition creates significantly greater scale, bringing together two engineering-driven companies and workforces with similar cultures that value technology leadership. Together, the two companies’ complementary technologies and capabilities strengthen core franchises and provide new opportunities for innovation to solve our customers’ most complex challenges.”
As previously communicated, the transaction is expected to be slightly accretive on a GAAP basis to Harris in the first full year and a significant contributor thereafter. Harris is executing its detailed integration plan to deliver significant and lasting value for all stakeholders. The company expects to provide fiscal 2016 guidance on its fourth quarter fiscal 2015 earnings call.