Harris Corp. (HRS) agreed to acquire satellite-communications
provider CapRock for about $525 million, in a move that will expand
its international presence and customer base.
Privately held CapRock provides end-to-end satellite
communications solutions to governments as well as energy and
maritime companies in harsh and remote locations around the
world.
Harris Chairman and Chief Executive Howard L. Lance said the
company sees increasing demand for outsourced managed
communications services and that the deal also will provide an
entry into the energy market, while expanding its presences in
government and maritime markets.
Harris, a maker of digital multiband radios used by the
military, on Monday also agreed to acquire privately held SignaCert
Inc. to expand its position in Internet security and compliance
offerings for government and commercial clients.
Harris said the CapRock acquisition is expected to add slightly
to earnings in its 2011, making a more significant contribution in
2012.
Harris last month posted a 46% increase in fiscal third-quarter
profit as it continued to see orders rise and raised its earnings
outlook for the year.
Shares closed Thursday at $45.78 and were inactive premarket.
The stock is up 87% in the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com