Harris Corp. (HRS) to Sell CapRock Communications to SpeedCast for $425M

November 1, 2016 6:26 AM EDT

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Harris Corporation (NYSE: HRS) and SpeedCast International Limited (ASX: SDA) today announced a definitive agreement under which SpeedCast will acquire Harris’ CapRock Communications commercial business for $425 million in cash. Proceeds from the transaction will be used to pay down debt and return cash to shareholders. The transaction is subject to regulatory review and other customary closing conditions and is expected to close in the first calendar quarter of 2017.

“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,” said William M. Brown, chairman, president and chief executive officer. “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. We will continue to optimize our portfolio to become a more focused company positioned for long-term growth.”

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