Harris-Exelis merger clears final hurdles; $4.75 billion deal expected to close this week
McLEAN, Va., 26 May 2015. The Pending acquisition of defense electronics specialist Exelis Inc. by Harris Corp. cleared one of its final hurdles Friday when Exelis shareholders approved the merger agreement.
Harris and Exelis executives announced a $4.75 billion deal last February for Harris to acquire Exelis in a cash and stock transaction worth $23.75 per share. The acquisition should close on Friday.
More than 97 percent of the shares voted at the special meeting Friday voted in favor of the transaction, representing more than 79 percent of all outstanding shares of Exelis.
The U.S. Department of Justice terminated the merger waiting period earlier this month. At close, Harris shareholders will own about 85 percent of the combined company, and Exelis shareholders will own about 15 percent.
The combined company would have had more than $8 billion in revenue and about 23,000 employees globally in 2014, including 9,000 engineers and scientists.
The combined company will have executive leadership and be comprised of senior members of both organizations.
The combined company will be called Harris, but it is not clear if the company's headquarters will remain in Melbourne, Fla., or related to the Washington, D.C. area. The Exelis headquarters has been in McLean, Va.
Exelis is a global aerospace, defense, information, and services company that specializes in positioning and navigation, sensors, air traffic management, image processing and distribution, communications, and information systems.
Harris is an international communications and information technology company with strengths in assured communications, systems, and services.