SANTA BARBARA, California – Harris Corp. and L3 Technologies announced on June 21 that their merger has the required regulatory approvals to close following a decision by the Justice Department.
The Justice Department has ruled that Harris Corp. it would alienate its night vision business for the merger to proceed. Harris Corp. and L3 Technologies are the only providers of a critical component used in military-grade night vision systems, raising concerns that the combined company would monopolize the technology.
The Justice Department filed a civil antitrust suit on June 20 to block the merger as originally proposed, and an agreement that would see Harris Corp.'s night vision business. separate from the combined company.
Harris announced in April that it would sell its night vision business to the US division of Israeli defense and technology company Elbit Systems for $ 350 million in cash. In a statement on June 21, Harris and L3 reiterated this plan.
"The merger, as originally structured, would give the combined company the monopoly of image intensifier tubes, an essential component of the night vision devices used by the United States military," said Makan Delrahim, Deputy Attorney General of the Antitrust Division Department of Justice. in a statement. "Today's agreement will ensure that our military continue to benefit from competing for a critical mission component in which soldiers operating in low-light environments depend on every day."
Harris and L3 provide space technology for numerous commercial and military programs. The L3 constructs spacecraft sensor payloads, launcher avionics and mobile wave tube amplifiers used in telecommunications satellites. Harris provides antennas that can not be exhausted, hosted loads and launched a cubesat in November that could open the floodgates for the production of constellations, particularly for classified buyers.
Harris on June 21 received a contract modification of $ 18 million to build L and S band antennas for the Air Force Satellite Control Network.
Harris and L3 said the $ 34 billion merger is expected to close on June 29. The merger remains on track to close the October deadline. when first announced despite the scrutiny of the Justice Department. The company will be named L3Harris Technologies, Inc and will be traded on the New York Stock Exchange as LHX.
Harris CEO Bill Brown said on May 1 that he still expects L3Harris Technologies to reach $ 3 billion in free cash flow in three years.