Private equity firm Ripplewood Holdings has distributed all 27.6 million of its shares of US in-flight broadband provider Gogo to its funds’ limited partners.
Commenting on the move, Ripplewood’s founder Timothy Collins said: “We continue to believe…
Private equity firm Ripplewood Holdings has distributed all 27.6 million of its shares of US in-flight broadband provider Gogo to its funds’ limited partners.
Commenting on the move, Ripplewood’s founder Timothy Collins said: “We continue to believe that Gogo has a very bright future as a leader and pioneer in the in-flight connectivity and digital entertainment solutions markets, and we have been extremely pleased by the performance of the company and the success of our investment in Gogo. This share distribution was made to provide our limited partners with greater flexibility to achieve liquidity.”
Simultaneous with the share distribution, three Ripplewood directors, Collins, Lawrence Lavine and Christopher Minnetian, resigned from the Gogo board. These resignations reduce the number of directors on the board to eight. Gogo is currently considering whether to fill any or all of these vacancies.
Ripplewood originally invested in Gogo back in 2006. The fund was one of the company’s two private equity sponsors alongside Thorne Information Partners, the investment fund of Oakleigh Thorne.
Following Gogo’s IPO in June 2013, the two investors reduced their stakes from 38% to just under 30%. Both were subject to a post-flotation lock-up, which came to an end in December.
Gogo’s share price has risen by 81% since its IPO in June, although dropped by almost 16% following Ripplewood’s announcement.
Unlike Ripplewood, though, Thorne has reiterated its intention to remain a shareholder in the company. Oakleigh Thorne said: “I have great confidence in the Gogo business model and management team and continue to be impressed by the company’s performance and growth. I am confident in the long term prospects for Gogo and our investment in the company.”
