The planned merger of Harris Corp. and Exelis stands to make the new company that will emerge one of the largest government contractors, and Harris — the acquirer — expects the transaction to greatly broaden its range of offerings.
Harris is mostly known in the defense market for tactical radio, while Exelis spans electro-optical sensors and other aerospace and defense information systems. Most analysts agree that the resultant company will have a broader footprint in the federal government, according to a report at C4ISR & Networks. The government market is an area in which both organizations have slipped and will be looking to recover.
Both companies count the Defense, Transportation and Commerce departments as their largest government customers. The customer base is an area where Harris' and Exelis' synergies will come together, especially when it comes to IT, according to analysts.
"Beyond the complementary nature of customers, this is going to help bolster Harris' credentials as an IT integrator. They want to provide end-to-end services where they go in and do everything for the customer," said Jesse Holler, quantitative analyst at Bloomberg Government. "Acquiring Exelis helps because they can bring in the communications and IT equipment. Harris also can focus more on strictly federal services: Exelis' are almost entirely federal [services], while Harris is substantially commercial, so it boosts the federal business."
Read the full report at C4ISR & Networks.
