By Tish Drake | October 21, 2013
Global Eagle Entertainment, the parent company of Row 44, acquired Travel Entertainment Group Equity Limited, the U.K.-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. The acquisition expands Global Eagle’s leadership in delivering content and software solutions to the international travel industry.
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 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,” said John LaValle, CEO 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.”
For the full year 2013 and on a stand-alone basis, IFE Services is expected to generate about $37 million to $40 million of annual revenue* and approximately $7 million to $9 million of Adjusted EBITDA.