Harris Corp. Acquires CapRock for $525 Million
[Satellite TODAY 05-24-10] Harris Corp. has entered into a definitive agreement to acquire CapRock Communications for $525 million in cash, the companies announced May 21.
Harris will finance the acquisition using a combination of cash on hand, commercial paper, and borrowings under its committed credit facilities. The transaction is expected to close during the first quarter of 2011 pending customary regulatory reviews, U.S Federal Communications Commission license approvals, and closing conditions.
As a result of the combination, Harris will acquire CapRock’s end-to-end managed communication service customers in the government and enterprise sector, including Chevron, Diamond Offshore, ExxonMobil, Halliburton, MODEC, Shell, Transocean, KBR, Green Reefers, Gulf Offshore, Seatrans, Oceaneering, Subsea 7, the U.S. Department of Defense, Department of Homeland Security and other federal civilian agencies.
Harris CEO Howard Lance said his company’s acquisition strategy is based on entering the energy sector after noticing increased demand for outsourced communication. “The acquisition provides an entry into the energy market, while expanding our present offering for the government and maritime markets to include managed satellite communications solutions. CapRock is a facilities-based global service provider that has made significant strategic investments in a self-owned and operated infrastructure to support demanding customer requirements,” Lance said in a statement.
CapRock’s 2009 full-year revenues were $359 million, with EBITDA of $54 million and operating income of $28 million. The company’ assets include four international teleports, four 24-hour network operations centers, eleven field dispatch and customer service centers, 700 employees and service on more than 50 satellites. In March, CapRock CEO Peter Shaper was named Via Satellite magazine’s 2009 Satellite Executive of the Year.
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