IFE Services purchased for $36 million
Veteran show business execs Harry Sloan and Jeff Sagansky (pictured above) have bulked up their Global Eagle in-flight entertainment operations via a $36 million cash acquisition of Travel Entertainment Group Equity Ltd., parent of IFE Services.
Deal comes three months after Global Eagle’s purchase of Post Modern Group. UK-based IFE Services provides content services to over 50 airline and cruise ship operators. A spokesman said the deal makes Global Eagle the biggest provider in the world for in cabin entertainment.
“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.
IFE Services is expected to generate approximately $37 million to $40 million of annual revenue this year and approximately $7 million to $9 million of adjusted EBITDA.
Sloan and Sagansky tapped the markets two years ago to raise $190 million for Global Eagle Acquisition and moved into in-flight entertainment last November by acquiring two companies — U.S.-based broadband service Row 44 and Germany-based content supplier Advanced Inflight Alliance — in a transaction valued at $430 million. They raised $325 million in July via an initial public offering for a second company, Silver Eagle Acquisition Corp. to focus on acquisitions in the media and entertainment area.
Sloan and Sagansky unveiled Global Eagle in early 2011 after Sloan had departed as chairman of MGM in the wake of The Lion completing its restructuring via a pre-packaged bankruptcy. Sagansky’s currently in charge of Winchester Capital, a private movie and television finance company based in New York. He’s worked for three decade in show business, including serving as president of CBS Entertainment between 1990 and 1994 and as CEO of Paxson Communications.