L3 Technologies stock was flying high Monday on news of a merger with Harris (NYSE:HRS).
This deal will have L3 Technologies (NYSE:LLL) going through a merger of equals to become a new global leader of defense technology. This will have holders of L3 Technologies stock exchanging them for shares of HRS stock.
The exchange rate for L3 Technologies stock holders is 1.30 shares of Harris stock for each share of LLL stock that they own. This exchange rate is based on the 60-trading day average exchange ratio of the two companies.
This deal will have holders of L3 Technologies stock owning a large portion of the new company. Their stake in the company after the merger will be 46%. The remaining 54% of the company will belong to current Harris shareholders.
According to the two companies, the new name of the company after the merger with be “L3 Harris Technologies, Inc.” This will make the new company the sixth largest defense company in the U.S. It will also put it among the top 10 defense company’s around the world.
L3 Technologies notes that the merger has already received the approval of both companies’ Boards of Directors. It now just needs to go through other customary closing conditions. This includes getting approval from regulators and shareholders. If all goes well, the deal is set to close in mid 2019.
LLL stock was up 11% and HRS stock was up 9% as of noon Monday. HRS is currently down 21% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.