The Harris Corporation , which makes satellite and other communications equipment for businesses and governments, said on Friday that it had agreed to acquire Exelis for $4.7 billion in cash and stock.

Exelis, which makes a range of technology and surveillance products, was spun off from the ITT Corporation in 2011. Its products include navigation equipment, sensors and air traffic management and communications systems for aerospace and defense.

Shareholders of Exelis would receive $16.625 in cash and 0.1025 of a share of Harris common stock for each of their shares, which amounts to about $23.75 a share.

“Acquiring Exelis is transformational for Harris,” William M. Brown, chief executive of Harris, said in a statement . “The combination of the two companies’ highly complementary core franchises creates a competitively stronger company with significantly greater scale.”

Harris said it would eventually achieve more than $100 million a year in cost savings by absorbing Exelis. Together, the companies have more than $8 billion in annual sales and 23,000 employees.

“This agreement to become part of Harris Corporation represents an exciting new chapter for Exelis,” David F. Melcher, chief executive of Exelis, said in a statement. “Combining the companies not only creates shareholder value, but the commitment to excellence and innovation that both companies share will significantly benefit customers and provide new opportunities for employees.”

Morgan Stanley advised Harris Corporation and Sullivan & Cromwell provided legal advice. JPMorgan advised Exelis, and Jones Day provided legal advice.