A McAleese & Associates report says the merged company of L3 Technologies (NYSE: LLL) and Harris (NYSE: HRS) would invest 4 percent of $18B combined revenue in independent research-and-development efforts.
Defense News reported Monday that focus areas of the proposed IRAD investment are actionable intelligence, spectrum superiority and warfighter effectiveness.
Jim McAleese, founder and principal at McAleese & Associates and a 2019 Wash100 winner, noted Harris and L3 plan to divest a significant portion of lower value operations within the first six months after the merger™s completion.
The two companies also have agreed to firewalls on the U.S. Navy™s Next Generation Jammer Increment II program and expect to complete the merger by the end of June, McAleese noted.
L3 and Harris agreed to merge through an all-stock transaction in October to establish a global defense technology firm that will operate as L3 Harris Technologies.
