Key Takeaways
- • L3Harris Technologies (NYSE:LHX) and venture capital firm Shield Capital formed a strategic partnership to foster emerging defense and commercial technologies, according to a Business Wire release dated March 29, 2022.
- • The agreement gives L3Harris access to disruptive innovators for technology transfer, teaming arrangements, direct investments, potential acquisitions and partnered contracts.
- • CEO Christopher E. Kubasik framed the deal as a direct response to customer demands for rapidly fielded, game-changing technology to counter global threats.
- • Shield Capital portfolio companies in cybersecurity, artificial intelligence, space sensing and autonomy are expected to reach customers more quickly through L3Harris's testing, procurement and delivery processes.
Summary
L3Harris Technologies (NYSE:LHX) and Shield Capital, a Silicon Valley-headquartered venture capital firm, have formed a strategic partnership aimed at accelerating the development and fielding of emerging defense and commercial technologies, according to a Business Wire announcement. The companies said the arrangement responds to customers' growing requirements for innovative, agile solutions that can be rapidly deployed.
Under the agreement, L3Harris gains access to disruptive innovators for technology transfer, teaming arrangements, direct investments, potential acquisitions and partnered contracts. The company described the move as part of its strategy to leverage third-party capabilities and make calculated investments addressing the most urgent national security challenges. In the partnership, L3Harris said it will identify, fund and then guide technology development and solutions aimed at urgent national security needs.
Christopher E. Kubasik, Vice Chair and CEO of L3Harris, said the partnership was a direct response to customer demands to rapidly deliver technology that can adapt to global threats. He also noted that Shield Capital's National Security Board brings unique experience in the national security space. L3Harris, which reported more than $17 billion in annual revenue and 47,000 employees with customers in more than 100 countries, described itself as a non-traditional prime focused on agile, rapid solution development.
For Shield Capital, the partnership is expected to channel advanced technology through L3Harris's proven testing, procurement and delivery processes, enabling its portfolio companies to more quickly develop and deploy technologies in cybersecurity, artificial intelligence, space sensing and autonomy. Raj M. Shah, Managing Partner of Shield Capital, said that the convergence of commercial and national security technologies is necessary to help the U.S. and partner nations deter conflict, and that L3Harris operates without the typical bureaucracy that can inhibit innovation.
Under the agreement, L3Harris gains access to disruptive innovators for technology transfer, teaming arrangements, direct investments, potential acquisitions and partnered contracts. The company described the move as part of its strategy to leverage third-party capabilities and make calculated investments addressing the most urgent national security challenges. In the partnership, L3Harris said it will identify, fund and then guide technology development and solutions aimed at urgent national security needs.
Christopher E. Kubasik, Vice Chair and CEO of L3Harris, said the partnership was a direct response to customer demands to rapidly deliver technology that can adapt to global threats. He also noted that Shield Capital's National Security Board brings unique experience in the national security space. L3Harris, which reported more than $17 billion in annual revenue and 47,000 employees with customers in more than 100 countries, described itself as a non-traditional prime focused on agile, rapid solution development.
For Shield Capital, the partnership is expected to channel advanced technology through L3Harris's proven testing, procurement and delivery processes, enabling its portfolio companies to more quickly develop and deploy technologies in cybersecurity, artificial intelligence, space sensing and autonomy. Raj M. Shah, Managing Partner of Shield Capital, said that the convergence of commercial and national security technologies is necessary to help the U.S. and partner nations deter conflict, and that L3Harris operates without the typical bureaucracy that can inhibit innovation.
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