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 the Australian company Speedcast International, the cost of the deal - USD 425 million. Later, CapRock was renamed to Speedcast.

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

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

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

Harris acquired CapRock in 2010 for USD 525 million.