Global Eagle Entertainment Acquires IFE Services Limited
21 Oct, 2013
Transaction Solidifies Position as In-Flight Media Leader
Adds to Coverage of Key Emerging Markets
Global Eagle's purchase of IFE Services follows closely on the Company's acquisition of digital content leader
"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
"This is another transaction that we expect to be highly complementary to our existing business," said
For the full year 2013 and on a stand-alone basis, IFE Services is expected to generate approximately
"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
In connection with the consummation of the IFE transaction, Global Eagle agreed to sell to one of its existing institutional stockholders, 2,435,472 shares of Global Eagle's common stock for an aggregate purchase price of
About Global Eagle
About IFE Services
IFE Services is a leading provider of in-flight entertainment solutions to the airline industry. Its focus on quality and innovation is supported by a strong commitment to customer service and investment in the latest systems and technologies.
IFE Services supplies a full range of services to enable its clients to provide a first class entertainment experience to passengers. They include movies, TV programs, audio, games, 3D map, apps, safety and destination films, portable entertainment systems, onboard publications and AVOD technical support and management.
IFE Services works with a broad client-base worldwide of over 50 airlines and cruise ship operators. The company's headquarters are in the
Notices Regarding Sales of Securities
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any offer or sale of these securities in any state or jurisdiction in which such offer, sale or solicitation would be unlawful. The registered direct offering is being made only by means of the prospectus supplement and accompanying base prospectus. When available, copies of the prospectus supplement and accompanying base prospectus relating to the registered direct offering may be obtained at the
* Financial Information of IFE
IFE has historically prepared its financial statements in accordance with
Cautionary Note Concerning Forward-Looking Statements
We make forward-looking statements in this release within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts for future events, including without limitation our earnings, revenues, expenses or other future financial or business performance or strategies, or the impact of legal or regulatory matters on our business, results of operations or financial condition. These statements may be preceded by, followed by or include the words "may," "might," "will," "will likely result," "should," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "continue," "target" or similar expressions. These forward-looking statements are based on information available to us as of the date of this earnings release, and involve substantial risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements as a result of as a result of new information, future events or developments or otherwise.
Among the factors that could cause actual results to differ materially from past results and future plans and projected future results are the following: our ability to integrate the Row 44, AIA, PMG and IFE businesses, the ability of the combined business to grow, including through acquisitions which we are able to successfully integrate, and the ability of our executive officers to manage growth profitably; the possibility that any of the anticipated benefits of our acquisitions, including synergies, cost savings and positive financial impact, will not be realized as anticipated or at all; the outcome of any legal proceedings pending or that may be instituted against us or our subsidiaries; changes in laws or regulations that apply to us or our industry; our ability to recognize and timely implement future technologies in the satellite connectivity space, including Ka-band system development and deployment; our ability to deliver end-to-end network performance sufficient to meet increasing airline customer and passenger demand; our ability to obtain and maintain international authorizations to operate our service over the airspace of foreign jurisdictions our customers utilize; our ability to expand our service offerings and deliver on our service roadmap; our ability to timely and cost-effectively identify and license television and media content that passengers will purchase; general economic and technological circumstances in the satellite transponder market, including access to transponder space in capacity limited regions and successful launch of replacement transponder capacity where applicable; our ability to obtain and maintain licenses for content used on legacy installed in-flight entertainment systems; the loss of, or failure to realize benefits from, agreements with our airline partners; the loss of relationships with original equipment manufacturers or dealers; unfavorable economic conditions in the airline industry and economy as a whole; our ability to expand our domestic or international operations, including our ability to grow our business with current and potential future airline partners or successfully partner with satellite service providers, including Hughes Network Systems; our reliance on third-party satellite service providers and equipment and other suppliers, including single source providers and suppliers; the effects of service interruptions or delays, technology failures, material defects or errors in our software, damage to our equipment or geopolitical restrictions; the limited operating history of our connectivity and in-flight television and media products; costs associated with defending pending or future intellectual property infringement actions and other litigation or claims; increases in our projected capital expenditures due to, among other things, unexpected costs incurred in connection with the roll out of our technology roadmap or our international plan of expansion; fluctuation in our operating results; the demand for in-flight broadband internet access services and market acceptance for our products and services; and other risks and uncertainties set forth in this release and in our most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q.
CONTACT: Global Eagle Entertainment Media Contact:
Karin Pellmannkpellmann@row44.com 646-515-6933 Global Eagle Entertainment Investor Contacts: Chris Plunkettor Brad Edwards Brainerd Communicators, Inc.(212) 986-6667 firstname.lastname@example.org email@example.com
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