Harris Corporation agrees to sell its CapRock communications business to SpeedCast International for $425 million
Harris Corporation of Melbourne, FL and SpeedCast International Limited announced on November 1 a definitive agreement under which SpeedCast will acquire Harris’ CapRock Communications commercial business for $425 million in cash. Proceeds from the transaction will be used to pay down debt and return cash to shareholders. The transaction is subject to regulatory review and other customary closing conditions and is expected to close in the first calendar quarter of 2017.
“One of Harris’ key priorities over the past several years has been to reshape our portfolio and focus on businesses where technology is a differentiator,” said William Brown, chairman, president and chief executive officer. “The sale of CapRock, which has been underway since early this calendar year, demonstrates our execution against this objective and will create value for shareholders. We will continue to optimize our portfolio to become a more focused company positioned for long-term growth.”
Headquartered in Houston, TX, CapRock is a premier global provider of managed satellite, terrestrial and wireless communications solutions for the cruise and energy markets. The business owns and operates a robust global infrastructure that includes teleports on six continents, four 24/7 customer support centers, a local presence in 24 countries and hundreds of global field service personnel supporting customer locations across North America, Central and South America, Europe, West Africa, Middle East and Asia Pacific.
Source: Harris Corporation