Harris sells off CapRock commercial business for $425M
- By Mark Hoover
- Nov 01, 2016
Harris Corp. is selling its CapRock Communications commercial business to SpeedCast International in a $425 million in cash deal.
“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 M. Brown, chairman, president and chief executive officer, in a release.
Harris acquired CapRock for $525 million in 2011. CapRock brought with it global managed satellite communications for the energy, government and maritime industries, including broadband internet access, voice-over IP, networking and real-time video delivered to remote locations around the world.
In this sale, Harris will be retaining CapRock’s government business, a company spokesperson said.
CapRock’s government clients included the Defense and Homeland Security departments as well as other federal agencies.
The commercial business will bolster SpeedCast’s position in the maritime industry, specifically the cruise sector, and will position the company for future growth in the energy industry, SpeedCast said in a release.
Proceeds from the transaction will be used to pay down debt and return cash to shareholders, Harris said in a release.
The deal is still subject to regulatory review and other customary closing conditions, but is expected to close in the first quarter of the 2017 calendar year.
Mark Hoover is a senior staff writer with Washington Technology. You can contact him at email@example.com, or connect with him on Twitter at @mhooverWT.