Harris-Exelis merger is completed

The Harris Corp.'s acquisition of Exelis Inc. is official.

Each outstanding share of Exelis common stock can be converted into $16.625 in cash and 0.1025 of a share of Harris common stock, according to a news release from Harris.

Harris shareholders own 85 percent of the combined company and Exelis shareholders own 15 percent, Harris officials announced.

"The Exelis acquisition is transformative for our company and marks a major milestone in Harris' 120-year history," said William M. Brown, chairman, president and CEO of Harris.

"Together, the two companies' complementary technologies and capabilities strengthen core franchises and provide new opportunities for innovation to solve our customers' most complex challenges," he said in a statement.

Harris will develop an integration plan and officials are expected to provide details during a conference call on fourth quarter earnings in July.

Lawmakers are saying the merger could bring 200 new jobs to the Rochester area. Harris' military and public safety radio business, Harris RF Communications, employs close to 2,200 locally. Exelis' geospatial systems division employs about 1,300 locally.

U.S. Sen. Charles Schumer, D-New York, said he arranged a meeting between representatives of Harris and New York state economic development officials "at his Rochester office for the specific purpose of bringing new jobs to Rochester."

"I am hopeful for positive results, and will continue to see this through," he said in a news release.

U.S. Rep. Louise Slaughter, D-Fairport, released a letter she sent to Gov. Andrew Cuomo asking for his support of Harris' request for state aid to move 200 new jobs to the Rochester area after the merger.

"Harris is in the process of applying for aid through Empire State Development to support the transfer of approximately 200 out-of-state jobs to Rochester," she said in the letter.

"I encourage your full support of Harris Corporation's competitive proposal to Empire State Development," she wrote.

Harris Corp. officials would not comment directly on whether they were planning to transfer jobs to Rochester.

"We are in the process of integration planning and it would be premature to discuss potential actions in specific regions," Harris spokesman Jim Burke said. "We expect to maintain a strong presence in the Rochester area and are in active discussions with state and local officials regarding our pending acquisition of Exelis. We greatly appreciate the longstanding relationship we have with Senator Schumer and Representative Slaughter."

Schumer said he recently asked Harris President and CEO Bill Brown if the merger would mean the loss of any jobs in Rochester.

"And he said, 'No, it absolutely would not,' " Schumer said.

"I think there's a very real chance, once the merger is approved, that we will see an increase in jobs in Rochester," Schumer said.

The combined company, which will still be called Harris, will have a combined work force of 23,000 employees — 9,000 of whom will be high-tech engineers and scientists specializing in communications and defense systems.

BLOUDON@DemocratandChronicle.com