8-KAcquisitions & DispositionsFinancial EventsRegulation FD+1

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Acquisition Completed (Aug 5, 2010)

Filed August 5, 2010For Securities:LHX

Summary

L3Harris Technologies (formerly Harris Corporation) announced the completion of its acquisition of CapRock Holdings, Inc. (CapRock) on July 30, 2010. This strategic move involved a merger where CapRock became a wholly-owned subsidiary of Harris. The acquisition price for CapRock was $525 million, to be distributed to CapRock's equity holders and warrant holders, subject to customary adjustments for CapRock's indebtedness, transaction expenses, taxes, cash, and cash equivalents at closing. CapRock specializes in providing mission-critical managed satellite communication solutions, serving diverse sectors including energy, government, and maritime industries. Its offerings encompass secure broadband internet, voice over IP, networking, and real-time video services for challenging and remote environments. This acquisition is expected to bolster Harris's capabilities in delivering comprehensive communication solutions to a global customer base. Funding for the acquisition included approximately $340 million raised through unsecured notes under Harris's commercial paper program.

Key Highlights

  • 1Harris Corporation completed the acquisition of CapRock Holdings, Inc. for $525 million on July 30, 2010.
  • 2CapRock is a provider of managed satellite communication solutions for energy, government, and maritime industries.
  • 3The acquisition was structured as a merger, with CapRock becoming a wholly-owned subsidiary of Harris.
  • 4The purchase price is subject to customary post-closing adjustments related to CapRock's financial position at closing.
  • 5Harris funded a portion of the acquisition through the issuance of approximately $340 million in unsecured commercial paper notes.
  • 6The commercial paper program is supported by a $750 million Revolving Credit Agreement.
  • 7As of July 30, 2010, Harris had approximately $220.7 million in cash and cash equivalents and short-term investments.

Frequently Asked Questions

This 8-K filing primarily announces the completion of Harris Corporation's acquisition of CapRock Holdings, Inc. and provides details regarding the transaction, including the purchase price and financing.

Harris Corporation financed a portion of the $525 million acquisition price through the issuance of approximately $340 million in unsecured notes under its commercial paper program. The rest was likely financed through existing cash or other credit facilities.

CapRock Holdings is a global provider of mission-critical managed satellite communication solutions. It offers services such as broadband internet, voice over IP, networking, and real-time video, particularly for harsh and remote locations in the energy, government, and maritime sectors.

The unsecured commercial paper notes represent a significant portion of the financing for the CapRock acquisition. These are short-term debt instruments that Harris expects to manage by repaying and reissuing them until they are potentially replaced by longer-term debt or repaid.