Harris Corp. and L3 Technologies Inc. said Sunday they will combine in the largest-ever defense industry merger, as the Pentagon expands budgets with an eye toward increased investment by contractors and quicker weapons development.
The deal, first reported by The Wall Street Journal on Saturday, would unite two companies with a combined market value of about $33.5 billion. With a transaction value of more than $15 billion, the merger would eclipse the 1997 combination of Boeing Co. and McDonnell Douglas Corp.
The combined company would have a product range stretching from military radios and top-secret space hardware to air-traffic-control systems. The amount of overlap between their products is limited, which should help the new entity cash in on a bump in Pentagon spending, spurred by President Trump, that comes after five years of cuts.
Source: The Wall Street Journal