Satellite operator Intelsat has completed its acquisition of the Commercial Aviation business of Gogo, which it says creates the world’s leading provider of inflight broadband connectivity to the commercial aviation industry.
The closing of the $400 million cash deal brings together two complementary enterprises — the world’s largest satellite operator with the leading provider of commercial inflight broadband and entertainment services — to deliver unprecedented innovation and long-term value to commercial airlines.
“Combining Intelsat’s next-generation global telecommunications network with Gogo Commercial Aviation’s leading capabilities and airline relationships will create unprecedented innovation in inflight digital connectivity, unlocking exciting new growth and brand loyalty opportunities across the airline industry,” said Intelsat Chief Executive Stephen Spengler. “With our powerful, integrated offering, airlines will no longer need to trade off speed, reliability or availability for coverage, even when flying at full capacity in and out of the busiest airport hubs.”
Intelsat says the deal further propels it into vertically-integrated managed mobility services, and deeper into the growing inflight connectivity market. Broadband connectivity for nine of the top 20 global airlines and an installed base of more than 3,000 commercial aircraft are now part of Intelsat’s portfolio of services.
Intelsat announced several leadership changes, effective immediately, as part of the deal close:
“Demand for inflight broadband is expected to grow at a double-digit rate over the next decade, and we remain committed to long-term success in broadband mobility services,” confirmed Spengler. “With Gogo Commercial Aviation, we will bring our complementary and collective expertise to help solve our customers’ toughest inflight connectivity and entertainment challenges. Our ability to initiate, execute and rapidly finalise this transaction demonstrates the forward momentum that Intelsat has maintained over the course of this year.”