US Justice Department Requires Harris to Sell its Night Vision Business

The US antitrust approval of the Harris-L3 merger required Harris to sell its night vision business to avoid a monopoly situation, as the two companies are the sole suppliers of US military-grade image intensifier tubes. Harris agreed in April to sell the unit to Elbit Systems of America for $350 million

The US Justice Department stipulated that Harris Corp. divest its night vision business for its merger with L3 Technologies to proceed.

Harris and L3 Technologies are the sole suppliers of a critical component used in military grade night vision systems, raising concerns that the combined company would monopolize the technology.

In a statement, the DOJ said that, “Without the divestiture, the proposed acquisition would eliminate competition between the only two suppliers of US military-grade image intensifier tubes, which are the key component in night vision devices such as goggles and weapon sights purchased by the Department of Defense (DoD) for the United States military.”

“The combination of Harris and L3 would leave the DoD without a competitive alternative for this critical input and likely result in higher prices, less favorable contract terms, and reduced research and development efforts,” the DOJ added.

In April, Harris announced it has agreed to sell its night vision business to Elbit Systems of America, a subsidiary of the Israeli defense and technology company, for $350 million.