-=Harris (HRS) and L3 Technologies (LLL) to combine in merger of equals

• The combined company, L3 Harris Technologies (LHX), will be the 6th largest defense company in the U.S. and a top 10 defense company globally

Harris and L3 Technologies (LLL) to combine in merger of equals; Cash EPS accretive in first full year post close

• Harris Corporation (HRS) and L3 Technologies (LLL) have agreed to combine in an all stock merger of equals to create a global defense technology leader, focused on developing differentiated and mission critical solutions for customers around the world.
  • Under the terms of the merger agreement, which was unanimously approved by the boards of directors of both companies, L3 shareholders will receive a fixed exchange ratio of 1.30 shares of Harris common stock for each share of L3 common stock, consistent with the 60-trading day average exchange ratio of the two companies.
  • Upon completion of the merger, Harris shareholders will own approximately 54 percent and L3 shareholders will own approximately 46 percent of the combined company on a fully diluted basis.
• The combined company, L3 Harris Technologies, will be the 6th largest defense company in the U.S. and a top 10 defense company globally, with approximately 48,000 employees and customers in over 100 countries. For calendar year 2018, the combined company is expected to generate net revenue of approximately $16 billion, EBIT of $2.4 billion and free cash flow of $1.9 billion.