Harris Corp., Melbourne, Fla., announced Friday it plans to purchase Exelis Inc., McLean, Va., in a cash and stock transaction worth about $4.75 billion that would create a single company with combined retirement plan assets of about $10 billion.
Both companies’ boards of directors unanimously approved the transaction, a joint news release from the companies said, and the transaction is expected to close in June.
Harris Corp. has about $3.5 billion in defined contribution plan assets, while Exelis Inc. reported $4.3 billion in defined benefit plan assets and $2.3 billion in defined contribution plan assets as of Dec. 31, 2013, in its most recent Form 5500 filings.
Exelis just completed the merger of its existing seven 401(k) plans into a single 401(k) plan called the Exelis Retirement Savings Plan on Jan. 1, the same date it transitioned to Voya Retirement Services as its sole record keeper. The company also has plans to freeze its defined benefit plan on Dec. 31, 2016.
Fidelity Investments is the current record keeper for Harris Corp.’s 401(k) plan.
Patrick Baumann, Harris Corp.’s assistant treasurer; Jim Burke, Harris Corp. spokesman; William C. Bonk, Exelis’ director of global benefits; and B.J. Talley, Exelis spokesman; did not return phone calls by press time.