In-flight satellite broadband provider Global Eagle Entertainment has acquired Travel Entertainment Group Equity Limited, the UK-based parent company of in-flight entertainment services provider IFE Services Limited, from GCP Capital Partners for…
In-flight satellite broadband provider Global Eagle Entertainment has acquired Travel Entertainment Group Equity Limited, the UK-based parent company of in-flight entertainment services provider IFE Services Limited, from GCP Capital Partners for approximately US$36m in cash.
IFE Services provides in-flight entertainment services to over 50 airlines and cruise lines, with a focus on emerging markets. For the full year 2013 and on a stand-alone basis, the company is expected to generate up to US$40m of annual revenue and approximately US$7m to US$9m of adjusted EBITDA.
The acquisition is in line with Global Eagle’s strategic plan of consolidating the main content and distribution companies serving the in-flight and maritime markets. In July 2013, the company purchased digital video production and content delivery specialist Post Modern Group for up to US$23.9m in cash and stock.
To fund this latest deal, Global Eagle sold 2,453,472 shares of common stock to existing shareholder Putnam Equity Spectrum Fund in a registered direct offering for an aggregate purchase price of US$21m.
It also issued a US$19m 12% convertible unsecured promissory note to PAR Investment Partners, Global Eagle’s majority shareholder. The note matures in 60-days and convertible into non-voting shares.
Harris Williams & Co acted as the exclusive financial adviser to Travel Entertainment Group.
