MELBOURNE, Fla. (WSLS 10) - Communications and information technology company Harris is buying Exelis in a cash-and-stock deal valued at approximately $4.75 billion. The new company will have approximately 23,000 workers worldwide.
Hundreds of people are employed at the Roanoke County Exelis plant on Plantation Road. It's not clear what it means for them.
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"As you know, the agreement was announced this morning. At this time, we cannot provide details about specific locations or operations," said Tim White the director of communications for Exelis in an email to WSLS 10. "It will be at a later date when the agreement is closed. "
Harris is based in Melbourne, Florida. Exelis, an aerospace, defense, information and services company, is based in McLean, Virginia. There are plans to consolidate the companies' headquarters.
The news became public about 7 a.m. Friday.
Earlier this week, Exelis and partner U&U Engineering announced a more than $10 million contract to manufacture night vision tubes for Taiwan with the production happening in Roanoke.
Exelis shareholders will receive $16.625 in cash and 0.1025 of a share of Harris common stock for each Exelis share they own. The companies put the transaction's value at $23.75 per share.
Harris stockholders will own about 85 percent of the combined company, with Exelis shareholders owning the remaining 15 percent.
The boards of both companies approved the deal unanimously. The buyout still needs approval from Exelis shareholders and is targeted to close in June.
Further background information:
Harris Corporation and Exelis, Inc. Friday announced a definitive agreement under which Harris will acquire Exelis in a cash and stock transaction valued at $23.75 per share, or an approximately $4.75 billion enterprise value.
The agreement has been unanimously approved by the Boards of Directors of both companies. The transaction is expected to close in June 2015 and is subject to customary closing conditions, including regulatory and Exelis shareholder approval.
"Acquiring Exelis is transformational for Harris," said William M. Brown, chairman, president and chief executive officer of Harris in a written statement, released on Friday. "The combination of the two companies' highly complementary core franchises creates a competitively stronger company with significantly greater scale. We are expanding in a market, where we have decades of success and a workforce dedicated to providing our customers with innovative and cost-effective solutions for some of their most complex challenges."
"This agreement to become part of Harris Corporation represents an exciting new chapter for Exelis," said David F. Melcher, chief executive officer and president of Exelisin a written statement, released on Friday. "Combining the companies not only creates shareholder value, but the commitment to excellence and innovation that both companies share will significantly benefit customers and provide new opportunities for employees."