US inflight broadband provider Global Eagle Entertainment (NASDAQ:ENT) has bought two sets of digital media and content assets for an undisclosed sum.
The group said it acquired India’s Western Outdoor Interactive (WOI) outright, as well as certain…
US inflight broadband provider Global Eagle Entertainment (NASDAQ:ENT) has bought two sets of digital media and content assets for an undisclosed sum.
The group said it acquired India’s Western Outdoor Interactive (WOI) outright, as well as certain assets from Texas-based RMG Networks (NASDAQ:RMGN), to offer more integrated solutions.
WOI has more than 30 years of experience in infotainment and specialised software for the airline industry. The assets being acquired from RMG include digital signage technologies for airline lounges and seatback screen entertainment.
GEE CEO Dave Davis said: “With the completion of both acquisitions, we’re excited to continue expanding our offerings to airlines and the maritime industries by growing our Digital Media Solutions and Content Services verticals.
“Digital media, coupled with inflight advertising and sponsorship, provides a burgeoning offering that will provide expanded opportunities to meet the rapidly evolving trends in the industry.”
Known to be interested in expanding inorganically, GEE raised eyebrows in February when it raised US$82.5m through a convertible bond that did not detail any active deals in its prospectus, although it did mention the possibility for acquisitions.
The notes, which came soon after GEE founders Harry Sloan and Jeff Sagansky said they would buy a stake of up to 38.6% in Indian DTH firm Videocon d2h, are due in 2035.
Other inflight service providers have also been looking to acquisitions to gain the scale and integration they need to meet the increasing needs of more demanding travellers.
This trend saw Spanish technology firm Amadeus agree to buy airline solutions specialist Navitaire this week in a US$830m deal. Amadeus has also struck a strategic alliance with Accenture, Navitaire’s former owner, to “help lead airlines through the digital transformation taking place in the industry and drive efficiency in the global operations of airlines’ businesses”.
In March, Japan’s Panasonic reportedly spent hundreds of millions of dollars to buy US-based satcoms firm ITC Global to complement Panasonic Avionics, its Californian inflight satellite communications provider.
But pricing pressures, regulations, satellite coverage, and installation costs still weigh on the industry as a whole.
GEE’s services will include Ku-band wide beam and HTS spot beam capacity on three SES satellites due to launch in 2017: SES-12, SES-14 and SES-15.
