Harris Corporation, an international communications and information technology company, has entered into a definitive agreement to acquire the Global Connectivity Services (GCS) business from Schlumberger Information Solutions, an operating unit of Schlumberger Limited.
The acquisition will extend Harris' capabilities as a global provider of mission-critical, end-to-end managed satellite communications services for customers operating in remote and harsh environments—including the energy, government and maritime industries.
With customers in more than 50 countries, Schlumberger GCS provides global communication services for a wide range of customers primarily in the oil and gas industries, including its parent company, Schlumberger.
The agreement to acquire Schlumberger GCS follows the Harris acquisition of CapRock Communications on July 30, 2010. CapRock is a premier global provider of managed satellite communications solutions—including broadband Internet, IP voice services, secure networking and real-time video—for the energy, government and maritime industries, as well as for disaster recovery.
Schlumberger GCS will be combined with CapRock Communications to form Harris CapRock Communications.
"Combining Schlumberger GCS with CapRock Communications will create an organization with unsurpassed global satellite network capabilities, broad service offerings, and a large experienced service team to provide customers with superior remote and in-the-field support," said Howard L. Lance, chairman, president and CEO of Harris.
Harris will purchase the Schlumberger GCS business for $397.5 million in cash, subject to post-closing adjustments. The transaction is subject to customary regulatory reviews and closing conditions, and it is expected to close during the third quarter of fiscal 2011.
"Schlumberger has successfully developed its Global Connectivity Services business over the past 10 years to reach an extensive global products and services offering. This acquisition by Harris will ensure continued growth and new technology deployment in a focused communications organization," said Tony Bowman, president of Schlumberger Information Solutions.
"Schlumberger will continue to take advantage of these capabilities once the transaction is concluded through a long-term contract with Harris CapRock Communications."
Harris, headquartered in Melbourne, Florida, is an international communications and information technology company serving government and commercial markets in more than 150 countries.
