Quick Facts
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

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

10/21/2013 10:36 AM ET

Global Eagle Entertainment Inc. (ENT: Quote) 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.

Register
To receive FREE breaking news email alerts for Equant NV and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Housing starts in the U.S. showed a notable increase in the month of March, according to a report released by the Commerce Department on Wednesday, although starts still came in well below economist estimates. The report showed that housing starts climbed 2.8 percent to an annual rate of 946,000 in March from the revised February estimate of 920,000. After moving mostly higher over the course of the two previous sessions, stocks may see some further upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 63 points. The U.K. unemployment rate fell below the 7 percent threshold to a five-year low in February and average earnings finally moved above inflation reducing the squeeze on household finances. The jobless rate came in at 6.9 percent of the labor force, the lowest since February 2009, data from the Office for National Statistics showed Wednesday.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.