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
Taiwanese electronics assembler Foxconn Technology Group has replaced 60,000 workers at a factory in China with robots, according to a report in the South China Morning Post. However, the company, which is a major supplier to Apple and Samsung, expects to maintain a significant workforce in China. Netflix Inc. and movie studio Disney are finally taking their deal that was announced in 2012 to the next level. The online movie rental service will become the exclusive U.S. pay-TV home of the latest films from Disney, Marvel, Lucasfilm and Pixar. Abercrombie & Fitch Co. (ANF) reported a GAAP net loss attributable to company of $39.6 million for the first quarter ended April 30, 2016 compared to a loss of $63.2 million, last year. Excluding certain items last year, net loss attributable to Abercrombie & Fitch Co. increased $2.4 million. Net...
comments powered by Disqus
Follow RTT