Intelsat has agreed to acquire the commercial aviation business of Gogo, the largest global provider of in-flight broadband connectivity, for $400 million in cash.
The transaction propels Intelsat’s efforts in the growing commercial in-flight connectivity market, pairing its high-capacity global satellite and ground network with Gogo’s installed base of more than 3,000 commercial aircraft to redefine the connectivity experience.
Gogo’s commercial aviation business provides Intelsat with airline deals and customer-facing capabilities, including a software platform, ISP and network management infrastructure. It currently serves 21 commercial airlines, including 9 of the top 20 global carriers.
This transaction will combine Intelsat’s space assets with Gogo’s 2Ku antenna to position Intelsat to deliver more cost-effective and advanced commercial aviation broadband connectivity services.
“Consumer demand for in-flight connectivity is expected to grow at a double-digit rate over the next decade,” said Intelsat CEO Stephen Spengler.
