Gogo sells commercial aviation IFC business to Intelsat

In-flight connectivity provider Gogo has agreed to sell its commercial aviation business to bankrupt satellite company Intelsat for $400m in cash. Gogo provides both air-to-ground and 2Ku-branded satellite-based airborne Wi-Fi services to a number of carriers including Delta Air Lines. Following the transaction, Gogo will provide Intelsat with exclusive access to its air-to-ground services in North America for 10 years. Intelsat says the deal will combine its next-generation high-throughput satellites with Gogo’s 2Ku antenna to “uniquely position Intelsat to deliver more cost-effective and advanced commercial aviation broadband connectivity services”. The transaction has been approved by a US bankruptcy court and is expected to close before the end of the first quarter of 2021. Intelsat will fund the acquisition using existing debtor-in-possession financing and cash on hand. “Consumer demand for in-flight connectivity is expected to grow at a double-digit rate over the next decade, notwithstanding the impact of Covid-19,” states Intelsat CE Stephen Spengler. “The addition of Gogo’s commercial aviation business provides compelling strategic value for our stakeholders and makes strong commercial sense.”<br/>