The merger is expected to close in mid-calendar year 2019, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals and approval by the shareholders of each company.
Assuming the merger goes through, L3 Harris Technologies will be the sixth largest defence company in the US and one of the top 10 globally, with approximately 48,000 employees and customers in more than 100 countries. The combined company is expected to generate roughly $16 billion in net revenue and free cash flow of $1.9 billion.
According to a Seeking Alpha transcript, during a conference call to discuss the merger, Chris Kubasik, chairman and CEO of L3 Technologies, said : ”On land, Harris’ global tactical communications franchise will be complemented by L3 franchise’s SATCOM, secured data links, cyber intelligence and optical communication. This will enable the combined company to develop more complex, multi domain communication solutions.
“In space and cyber, Harris has a long legacy in national level space system and has recently expanded into adjacent businesses, such as small satellites. L3 brings capabilities in optics, signal intelligence and data links that can be leveraged to provide more integrated capabilities in this increasingly contested domain.”
In related news, the US Department of Homeland Security (DHS) has declared Harris Corporation’s MASTR V P25 Base Station to be compliant under the updated requirements of the Project 25 Compliance Assessment Program (P25 CAP) including P25 Phase 2 (TDMA) operation – certifying the product’s interoperability and performance to mission-critical standards.
The MASTR V Base Station irovides secure P25 digital Phase 1/Phase 2 trunked and conventional interoperable communications on a secure and scalable Internet Protocol (IP) network. P25 CAP ensures LMR equipment complies with standards for interoperability and performance as determined by formal, independent testing in DHS-recognised P25 CAP laboratories.
Congress directed the creation of the P25 CAP in 2005, a partnership between the DHS Office for Interoperability and Compatibility, industry, and the emergency response community. The program’s initial focus was on the Common Air Interface – which MASTR V supports – allowing for over-the-air compatibility between radios and base station equipment.
“Harris has achieved an important milestone with the successful declaration of compliance – among the first in the industry for Phase 2 – of our MASTR V P25 trunked infrastructure from the DHS P25 CAP,” said Nino DiCosmo, president, Harris Public Safety and Professional Communications. “Harris is committed to the P25 Compliance Assessment program because our customers value products that are built on open standards.”