Harris Corp. Agrees To Buy Schlumberger Satcom Unit
WASHINGTON — Harris Corp. announced Nov. 8 that it has agreed to pay nearly $400 million to acquire Schlumberger’s Global Connectivity Services (GCS) business in a deal that would mark the Melbourne, Fla.-based company’s second acquisition this year of a managed satellite communications services business.
In July, Harris paid $525 million to purchase privately held CapRock Communications, a Houston-based company with 700 employees, roughly $360 million in annual revenue and customers in 120 countries.
Schlumberger GCS, which bills itself as the leading provider of communications services for the oil and gas industry, has 400 employees and principal operations in the United Kingdom, Norway, Singapore and the United States.
Under the terms of the deal, Harris will pay Schlumberger $397.5 million in cash, minus $50 million in allowable tax expenses, according to Harris spokesman Mark Raimondi.
Schlumberger GCS expects $170 million in revenue for 2010 and earnings before interest, taxes, depreciation and amortization of $41 million.
Harris Corp. has approximately $5 billion in annual revenue and more than 16,000 employees.