Defense firms Harris and L3 Technologies will be merging into one company, according to a joint press statement released on Sunday. The merger will be “all-stock,” and will result in the creation of the sixth-largest defense contractor in the United States, according to a report from Reuters.

“This transaction extends our position as a premier global defense technology company that unlocks additional growth opportunities and generates value for our customers, employees and shareholders,” said William M. Brown, Harris Chairman, President, and Chief Executive Officer. “Combining our complementary franchises and extensive technology portfolios will enable us to accelerate innovation to better serve our customers, deliver significant operating synergies and produce strong free cash flow, which we will deploy to drive shareholder value. Integration planning is already underway, and from our extensive experience with integration, we are confident in our ability to realize $500 million of annual gross cost synergies and $3 billion of free cash flow by year 3.”

The new firm, named L3 Harris Technologies, Inc., will be based out of Melbourne, Florida, and will have approximately 48,000 employees. The new company is expecting to see a net revenue of around $16 billion during its first year. The estimated worth of the new entity is $34 billion.

Both Harris and L3 manufacture communication tools and devices for the US Military and several dozen international customers, according to a report from Reuters.