logo
Share SHARE
FONT-SIZE Plus   Neg

Global Eagle Entertainment Acquires IFE Services For $36 Mln In Cash

Global Eagle Entertainment Inc. (ENT) announced Monday that it has acquired Travel Entertainment Group Equity Limited, the UK-based parent company of IFE Services Limited from GCP Capital Partners LLP for about $36 million in cash.

IFE Services is a provider of in-flight entertainment services to airlines and cruise lines worldwide.

For the full year 2013 and on a stand-alone basis, IFE Services is expected to generate approximately $37 million to $40 million of annual revenue and about $7 million to $9 million of Adjusted EBITDA.

In addition, the company expects to achieve substantial synergies beginning in first half of 2014 as a result of the combination of IFE Services with Global Eagle.

In connection with the consummation of the IFE transaction, Global Eagle agreed to sell to one of its existing institutional stockholders, 2.43 million shares of Global Eagle's common stock for an aggregate purchase price of $21.00 million, in a registered direct offering by means of a prospectus supplement to Global Eagle's effective shelf registration statement which Global Eagle will file with the Securities and Exchange Commission or "SEC".

In addition, Global Eagle will issue to PAR Investment Partners, L.P., an existing Global Eagle stockholder, a $19.00 million promissory note which is convertible into shares of Global Eagle's non-voting common stock.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Senate Republicans released a draft of their version of legislation to repeal and replace Obamacare on Thursday, with a vote on the 142-page bill expected as soon as next week. The bill, called the Better Care Reconciliation Act, repeals Obamacare's individual and employer mandates as well as the... A local cable and broadband provider in Texas has filed a lawsuit against Comcast Corp., alleging that the cable giant and its contractors drove it out of business by severing its business cable lines after it rejected Comcast's buyout offer. The lawsuit was filed last week in Harris County, Texas, court by Anthony Luna, owner of Telecom Cable LLC. John Oliver, the host of HBO's Sunday Show "Last Week Tonight," HBO and Time Warner have been sued by coal baron Robert Murray for mocking him and his coal company on the show's most recent episode. Murray had previously sent the show its first cease-and-desist letter.
comments powered by Disqus
Follow RTT