Global Eagle Entertainment acquires IFE Services Limited
Global Eagle Entertainment Inc. announced that it has acquired Travel Entertainment Group Equity Limited, the UK-based parent company of IFE Services Limited (IFE Services) from GCP Capital Partners LLP.
IFE Services is a leading provider of inflight entertainment services to airlines and cruise lines worldwide. The acquisition expands Global Eagle's leadership in delivering content and software solutions to the international travel industry.
"This acquisition is in line with our strategic objective to grow our position as the leading provider of inflight media, to broaden our client base and to further strengthen the combined service offerings we provide to airlines worldwide," said John LaValle, Chief Executive Officer of Global Eagle.
"The addition of IFE Services will significantly enhance our presence in multiple fast-growing, emerging markets where our combined service offerings are in demand. We look forward to working together with IFE's CEO, Andy McEwan and the talented team at IFE Services in bringing our innovative solutions to the worldwide travel industry," Lavalle added.
Global Eagle's purchase of IFE Services follows closely on the company's acquisition of digital content leader Post Modern Group (PMG) in July 2013. With a 20-year history, IFE Services provides a broad range of content solutions, spanning movies, TV programs, games, mobile apps, publications, safety videos and technical support to a worldwide client base of over 50 airline and cruise ship operators. IFE Services has a particularly strong customer presence among quickly-growing airlines in developing markets in Africa, Asia and South America.
"This is another transaction that we expect to be highly complementary to our existing business," said Dave Davis, Chief Financial Officer of Global Eagle. "In addition to adding IFE Service's strong cash flows, we believe we can unlock substantial efficiencies from our combined operations to the benefit of our shareholders. At the same time, we continue to be in a solid position to pursue additional acquisitions given our healthy balance sheet, strong management team and growing global footprint."
"Having supported the business and the management team of IFE over the last five years, we are delighted that, in Global Eagle, IFE Services has a supportive new owner that will be able to capitalize on its achievements to date," said Adam Maidment, Managing Director of GCP Capital Partners LLP.