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.