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
Shares of Rio Tinto Plc. were losing around 7 percent in the morning trading in London after the mining giant reported a loss for its fiscal year 2015, compared to profit last year, amid steep decline in commodity prices. Further, the company announced flat dividend, and said it is no longer appropriate to maintain the progressive dividend policy. French lender Societe Generale SA reported Thursday higher net profit in its fourth quarter, while operating income declined sharply amid higher litigation provision and lower net banking income. However, fiscal 2015 was marked by good operating performances in all the businesses. Citing the annual results, the company lifted its dividend. Fast-food giant Burger King will be adding hot dogs to its menu in the US from February 23. According to Burger King's North American President Alex Macedo, this addition is the most significant menu addition for the burger chain since it added a chicken sandwich in the 1970s. Burger King will...
comments powered by Disqus
Follow RTT