Harris Corporation has entered into a definitive agreement with satellite communications and network service provider SpeedCast International under which SpeedCast will acquire Harris’ CapRock Communications business for $425 million in cash.
Houston-based CapRock is a provider of managed satellite, terrestrial and wireless communications solutions for the cruise and energy markets.
Harris said on Tuesday that the proceeds from the transaction would be used to pay down debt and return cash to shareholders.
Furthermore, the transaction is subject to regulatory review and other customary closing conditions and is expected to close in the first calendar quarter of 2017.
William M. Brown , Harris Corporation’s chairman, president, and CEO said: “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.
“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.”