Harris (HRS -1.6%) expects to win antitrust approval for its planned acquisition of Exelis(XLS -0.6%) without having to make any asset disposals and still anticipates the $4.6B deal to close in June.
The remaining stumbling block is its ownership of intellectual property related to a planned Army radio upgrade, Chief Executive Bill Brown said on a post-earnings call. The company is confident it will resolve the issue.
The completion of Harris' (NYSE:HRS) acquisition of defense contractor Exelis (NYSE:XLS) has been moved back at least a month or longer, while the DoD conducts its own review of the $4.75B deal, CT Financial News reports.
Harris bought itself another 30 days to avoid a more comprehensive review by pulling, then refiling, its Hart-Scott-Rodino Antitrust Act application with the Department of Justice.
Exelis's (XLS) board authorizes a plan to spin-off its military and government services business, Exelis Mission Systems. Completion is expected in summer of 2014.
Exelis will focus future investments on strengthening its Critical Networks, ISR & Analytics, Electronic Warfare, and Aerostructures ops.
Exelis is expected to generate $3.4B in revenue in 2013 after a pro forma adjustment for the spin-off, with a "meaningful appreciation in its growth and operating margin profile" as well as diversification of non-U.S. defense customers to 50% from 30% currently.
Exelis Mission Systems' pro forma 2013 revenue is estimated at $1.5B. Division President Kennett Hunzeker will lead the spun-off entity.