Harris buys CapRock Communications for $525M

MELBOURNE, Fla.

Harris Corp., which makes communication equipment, said Friday it will buy satellite provider CapRock Communications for $525 million in cash.

Harris said the deal expands its international presence and customer base.

"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 CEO Howard L. Lance said in a statement

Privately held CapRock had 2009 operating income of $28 million on revenue of $359 million, according to Harris. Some of the Houston-based company's biggest clients include Chevron, Diamond Offshore, ExxonMobil, Halliburton and the U.S. Defense Department.

Harris said the acquisition will begin to benefit its earnings in fiscal 2011, excluding acquisition-related charges, and become a more significant earnings contributor in fiscal 2012.

Shares of Harris rose $1.74, or 3.8 percent, to $47.52 in morning trading.