The proposed merger of American technology firm Harris and aerospace and defence company L3 Technologies has received stockholder approval.
In October, the companies announced an agreement to merge in an all-stock deal to establish a $33.5bn global defence technology conglomerate.
The combined military technology company will be named L3 Harris Technologies. Once operational, it is expected to serve as the sixth largest military technology company in the US.
Harris chairman, president and chief executive officer William M Brown said: “I am pleased that our shareholders voted in favour of this strategic combination, which will create a premier global defence technology company.”
L3 chairman, chief executive officer and president Christopher E Kubasik said: “Overall, integration planning is proceeding well as we prepare to capture operational synergies and establish a shared culture of innovation. The increased scale of L3 Harris will allow us to deliver comprehensive mission-critical solutions to our customers while creating value for all of our stakeholders.”
The transaction is still awaiting the receipt of regulatory approvals and satisfaction of customary closing conditions. It is expected to be completed by the middle of the year.
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Separately, Elbit Systems of America has agreed to purchase Harris’ Night Vision business for $350m in cash.
Proceeds from this deal, which is subject to the completion of the Harris and L3 merger, will be used to pre-fund the L3 Harris pension and return cash to shareholders.
Brown added: “In January 2019, we announced that as part of the L3 merger regulatory process we had proactively started exploring the sale of our night vision business.”
Operating as part of the Harris Communication Systems segment, the night vision business’s products are used by the militaries of the US and allied nations, security forces and the federal homeland security purposes.