Harris sets sights on $525M acquisition
Harris will make cash purchase of CapRock Communications
- By David Hubler
- May 21, 2010
Just days after Harris Corp. announced its intention to acquire SignaCert Inc., a privately held provider of information technology, Harris has entered into a definitive agreement to acquire CapRock Communications, a global provider of managed satellite communications for the energy, government and maritime industries.
Under the terms of the agreement, Harris will purchase CapRock for $525 million in cash, subject to post-closing adjustments.
Harris will finance the acquisition using a combination of cash on hand, commercial paper and borrowings under its committed credit facilities, according to an announcement from Harris released today.
Established in 1981, the Houston-based company provides secure, managed communications services including broadband Internet access, voice over IP, networking and real-time video delivered to harsh and remote locations around the world, the Harris announcement said.
CapRock’s managed network solutions include multiband, portable and fixed satellite communications services supported by its teleports and network operations centers around the globe.
The company designs, implements and operates these sophisticated, end-to-end managed network solutions under long-term contracts.
The acquisition is expected to be slightly accretive to Harris’ earnings in fiscal 2011, excluding acquisition-related charges, and a more significant contributor to earnings in fiscal 2012.
The transaction, which is subject to customary regulatory reviews, FCC license approvals and closing conditions, is expected to close during the first quarter of fiscal 2011.
“Acquiring CapRock expands our international presence and customer base, while increasing the breadth of our assured communications offerings," said Howard Lance, Harris chairman, president and chief executive
officer, in the announcement. "We see increasing demand for outsourced managed communications services that include secure high-availability networks, creating growth opportunities across a variety of markets."
CapRock's government clients include the Defense and Homeland Security departments and other federal civilian agencies.
The company has more than 700 employees located primarily in Houston, Washington, D.C., the U.K., Brazil and Indonesia.
Harris, of Melbourne, Fla., ranks No. 13 on Washington Technology’s 2009 Top 100 listo f the largest federal government prime contractors.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.