Intelsat has completed its acquisition of the commercial aviation business of Gogo. The closing of the $400m cash deal brings the satellite operator with the provider of commercial inflight broadband and entertainment services to deliver innovation and long-term value to commercial airlines.
The culmination of this transaction further propels Intelsat 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 has also announced several leadership changes, effective from December 1. John Wade will remain president of Gogo Commercial Aviation, now a division of Intelsat. In this role, he will manage all aspects of the business, including product, sales, account management, quality and service delivery.
Bruno Fromont has been named Intelsat’s Chief Technology Officer. He will lead spectrum strategy, asset planning, product development and innovation.
Jon Cobin has been named Intelsat’s Chief Strategy Officer, leading the company’s corporate strategy and business development efforts. Cobin joins Intelsat from Gogo, where he served most recently as Chief Strategy Officer.
Commenting on the acquisition, Intelsat Chief Executive Stephen Spengler said: “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. 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.”
Spengler added: “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. 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.”