Harris Corporation and L3 technologies announced on October 12 their intention to merge to create what would become the world’s seventh largest defence company.

The merger will create a defence technology organisation with a broad portfolio of capabilities and innovation in the fields of communications, sensors, electronic warfare and other key enabling capabilities, including in Australia with the ADF and various para-public organisations.

To be called L3 Harris Technologies, the new entity will be headquartered in Melbourne, Florida, and will have 48,000 employees, customers in more than 100 countries, and anticipated net revenues of US$16bn (A$22.4bn).

“This transaction extends our position as a premier global defense technology company that unlocks additional growth opportunities and generates value for our customers, employees and shareholders,” Harris Chairman, President and Chief Executive Officer Bill Brown said in a statement.

“Combining our complementary franchises and extensive technology portfolios will enable us to accelerate innovation to better serve our customers, deliver significant operating synergies and produce strong free cash flow, which we will deploy to drive shareholder value.”

L3 Chairman, President and CEO Christopher E Kubasik added, “This merger creates greater benefits and growth opportunities than either company could have achieved alone. The companies were on similar growth trajectories and this combination accelerates the journey to becoming a more agile, integrated and innovative non-traditional 6th Prime focused on investing in important, next-generation technologies.

“L3 Harris Technologies will possess a wealth of technologies and a talented and engaged workforce. By unleashing this potential, we will strengthen our core franchises, expand into new and adjacent markets and enhance our global presence.”

Harris’ Brown will serve as chairman and CEO following the closing of the merger, with L3’s Kubasik to take on the roles of vice chairman, president and COO.

“Both Chris and I are privileged to serve alongside exceptionally talented colleagues,” Brown said in a message to Harris’ staff. “Our employees drive our accomplishments every day and made this merger possible. Our people are our true differentiators and will ensure that we continue to succeed as a combined company.”