Cruise-Ship Internet Provider Sold

By ,   November 7, 2016 ,   Cruise Industry

Harris Corporation has sold its subsidiary, CapRock Communications, which provides satellite communications to over 130 cruise ships. The buyer is an Australian company, and the cost of the deal - US$425 million.

Carnival Corporation and Royal Caribbean Cruises Ltd. are CapRock's two big cruise customers.

Royal Caribbean

The new owner, Speecast International, had 2015 revenue of $167.6 million, according to its annual report. In a recent financial presentation, a Harris executive put CapRock's annual revenue at $240 million, but said that is likely to decline.

The biggest market for satellite communications services is the offshore energy sector, which has been hit by declining oil prices. Harris provides services to about 1,000 energy sites.

Harris acquired CapRock in 2010 for $525 million.