Global Eagle Entertainment has acquired Travel Entertainment Group Equity Limited from GCP Capital Partners for approximately $36 million in cash.
The company’s IFE Services provides in-flight entertainment services to airlines and cruise lines worldwide, which has been a growing focus on Global Eagle.
IFE Services provides a broad range of content, including movies, TV programs, games, mobile apps, publications, safety videos and technical support to over 50 airline and cruise ship operators. It also has a strong presence in such developing markets as Africa, Asia and South America.
Global Eagle, which was founded in 2011 by former MGM CEO and chairman Harry Sloan and former CBS Entertainment president Jeff Sagansky, is the biggest provider of television shows and movies to airlines in the world. With this purchase, Global Eagle will now offer between 65 to 70 percent of the entertainment content available to airlines around the world.
Sagansky and Sloan have increased their position primarily through acquisition. Last July, Global Eagle bought in-flight entertainment company Post Modern Group in a deal worth as much as $23.9 million.
In November 2012, the company acquired Row 44, a leading satellite-based broadband service for the airline industry, and a majority stake in Advanced Inflight Alliance, a supplier of games, movies and entertainment for airlines, in deals valued at $430 million. It has continued to build up its control of AIA by tendering shares, which has given a 94 percent ownership position.
“This acquisition is in line with our strategic objective to grow our position as the leading provider of in-flight media, to broaden our client base and to further strengthen the combined service offerings we provide to airlines worldwide,” John LaValle, Chief Executive Officer of Global Eagle, said in a statement. “The addition of IFE Services will significantly enhance our presence in multiple fast-growing, emerging markets where our combined service offerings are in demand.”
This year, IFE Services is expected to generate approximately $37 million to $40 million in revenue and approximately $7 million to $9 million in adjusted EBITDA.