Communications and information technology company Harris is buying Exelis in a cash-and-stock deal valued at approximately $4.75 billion.
The new company will have approximately 23,000 workers worldwide.
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Harris is based in Melbourne, Florida. Exelis, an aerospace, defense, information and services company, is based in McLean, Virginia. There are plans to consolidate the companies' headquarters.
Exelis shareholders will receive $16.625 in cash and 0.1025 of a share of Harris common stock for each Exelis share they own. The companies put the transaction's value at $23.75 per share.
Harris stockholders will own about 85 percent of the combined company, with Exelis shareholders owning the remaining 15 percent.
The boards of both companies approved the deal unanimously. The buyout still needs approval from Exelis shareholders and is targeted to close in June.