Global Eagle Entertainment Acquires In-Flight Content Provider for $36 Million
Global Eagle Entertainment’s latest acquisition signals that further consolidation looms. Though we still think long term the key is providing internet access to consumers with their own digital devices and their own native content consumption habits.
Excerpt from Apex Editor's Blog
Making good on its stated promise to further consolidate the inflight entertainment and connectivity (IFEC) industry, and work towards creating an “entertainment in motion powerhouse”, Global Eagle Entertainment has bought the UK-based parent of IFE Services – Travel Entertainment Group Equity – for $36 million in cash.
The acquisition of Travel Entertainment Group Equity from private equity business GCP Capital Partners, together with Global Eagle’s recent acquisition of digital content specialist Post Modern Group (PMG), makes the firm “clearly the market leader” in content service provisioning, CFO Dave Davis tells the APEX Editor’s Blog.
From the press release: 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 approximately $7 million to $9 million of Adjusted EBITDA.