MCLEAN, VA—Melbourne, FL-based defense contractor Harris Corp. has reportedly confirmed that after its recent acquisition of locally-based Exelis Inc. it is undertaking a headquarters study to determine where the combined company should be headquartered.
"As part of our integration planning leading up to the acquisition closing, we are reviewing areas related to company structure and where there are potential opportunities for synergies," says Harris Corp. spokesman Jim Burke. "That includes the headquarters operations. We cannot comment on those plans until the closing."
On Friday Harris and Exelis announced they had reached a definitive agreement under which Harris will acquire Exelis in a cash and stock transaction valued at $23.75 per share, or at an approximate $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.
"Acquiring Exelis is transformational for Harris," said William M. Brown, chairman, president and chief executive officer of Harris in its press announcement. "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."
Harris spokesman Burke did not confirm if the company was considering a possible relocation to the DC area, saying only that the firm has "a long history in the Virginia-Maryland-D.C. area and expects to maintain a strong presence."
Harris' Brown in a conference call added, "Certainly our focus right now is closing the deal, launching integration, (and) ensuring a successful post-integration period," he said. "But clearly there's going to be a realignment of the way we are organized." See story in the Washington Business Journal.
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