Source: Harris Corporation
Harris Corporation (NYSE:HRS), an international communications and information technology company, has completed its previously announced acquisition of the Global Connectivity Services (GCS) business from an operating unit of Schlumberger (NYSE: SLB).
Harris combined the former Schlumberger GCS business with its existing Maritime Communications Services business and the recently acquired CapRock Communications, and infrastructure assets from Core180's government business to form Harris CapRock Communications – the leading provider of managed communications services for remote and harsh environments including those in the energy, government and maritime industries.
"Integrating these businesses into a single enterprise creates an organization with unsurpassed satellite and terrestrial networks capabilities, end-to-end service offerings, and an experienced service team that will provide customers with unsurpassed in-the-field support on a global scale," said Howard L. Lance, chairman, president and chief executive officer of Harris. "Harris CapRock Communications will use its capabilities and expertise to offer customers the most secure, reliable and efficient communications solutions in the industry."
Harris CapRock Communications has more than three decades of experience serving customers in more than 100 countries. The business has more than 1,400 employees, a local presence in 23 countries and a robust self-owned and operated infrastructure that includes teleports on six continents, six 24/7 Network Operation Centers and an extensive terrestrial network. Harris CapRock Communications delivers trusted and reliable comprehensive communications and IT solutions that make it possible for clients to stay focused on their missions.
Solutions from the newly combined business include mission-critical communications, converged voice, video and data, highly reliable and secure connectivity, and rapid and mobile deployments. Energy customers include national oil companies, major oil companies, independent oil companies, oil field service companies, seismic companies, oil and gas marine companies, rig owners and management companies. Maritime industry customers include international shipping and service companies. Government customers include defense, homeland security, and other federal civilian agencies.
Harris CapRock Communications also will leverage Harris' strong and expanding technology and service capabilities — along with its growing global presence — to provide integrated solutions to meet individual customer and market needs. Harris is unique in its ability to integrate advanced technology and services to capture, aggregate, distribute, and analyze any type of communications or information — including voice, video, data, and imaging.
Harris has built some of the world's most trusted networks for customers in established markets including defense, intelligence, air traffic control, public safety, and broadcast. Harris is extending this reach into new markets, including healthcare, energy, cloud computing and others.
Harris purchased the Schlumberger GCS business for $397.5 million in cash, subject to post-closing adjustments. The purchase price was paid from cash on hand. The goodwill arising from the acquisition will be an allowable tax expense with an estimated net present value of $50 million, resulting in an effective purchase price of $347.5 million.