One of the biggest names in high-end military communications is getting bigger. Harris Corp. said it’s buying CapRock Communications, a privately held provider of satellite communications for the energy, government and maritime sectors.
Established in 1981, CapRock provides its customers with secure, managed communication services including broadband Internet access, voice-over-IP, networking and real-time video delivered to harsh and remote locations around the world.
Its network solutions include multiband, portable and fixed satellite communications services supported by its teleports and network operations centers around the globe. CapRock designs, implements and operates the network solutions under long-term contracts.
This past winter, CapRock boosted coverage on its pre-packaged satellite subscription service, CommandAccess with the finalization of its commercial X-band network with military-grade features for secure voice, video, and data communications. ?
The deal is worth $525 million in cash, subject to post-closing adjustments.
In 2009, CapRock had revenue of $359 million; EBITDA of $54 million; and operating income of $28 million. It is expected to close during the first quarter of fiscal 2011, subject to conditions.
CapRock supports a wide range of customers in the energy, maritime and government industries, 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.
CapRock has more than 700 employees and is based in Houston with major offices in Washington, the United Kingdom, Brazil, and Indonesia. It has four international teleports, four 24x7 network operations centers, 11 field dispatch and customer service centers, and service on more than 50 satellites. The company supports over 2,000 customer sites in over 120 countries around the world.
"Acquiring CapRock expands our international presence and customer base, while increasing the breadth of our assured communications offerings. We see increasing demand for outsourced managed communications services that include secure high-availability networks, creating growth opportunities across a variety of markets," said Howard L. Lance, chairman, president and CEO of Harris. "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."
Harris will explain more in a conference call and webcast on Monday, May 24.
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