Gail Chiasson, North American Editor
RMG Networks, Dallas, Texas, has finally completed the sale of its Airline Media Network business to Global Eagle Entertainment, Los Angeles (Nasdaq:ENT).
RMG announced that it was putting its airline network up for sale last March. Terms of the transaction were not disclosed.
In addition, through a separate acquisition, GEE has expanded both its digital media development expertise and its strong presence for apps and games to the inflight entertainment market with the acquisition of Mumbai, India based World Outdoor Interactive.
“The strategic divestiture of our Airline Media Network business will allow us to allocate additional focus to accelerate growth in our core Enterprise business,” says Robert Michelson, CEO and president, RMG Networks. “We see significant long-term growth opportunities in the Enterprise business, and believe this divestiture, along with the other strategic and operational initiatives we have executed, will allow us to more quickly achieve our ultimate goal of sustainable profitability.”
Scott Pawloski, executive vice-president and chief revenue officer of RMG Networks, will be joining GEE, along with many key members of his RMG team, to head all Global advertising and sponsorships.
By acquiring the rights to certain technologies and onboarding key personnel from RMG Networks, GEE now offers airlines and advertisers a more robust foundation from which to serve advertising and sponsorship opportunities via digital media, in either a connected or offline environment, seatback screen entertainment and digital signage in airline lounges.
The acquisition by GEE strengthens the former RMG Networks portfolio and digital advertising platform immensely as Global Eagle currently has roughly 60% of the in flight entertainment content market share. GEE has over 650 connected aircraft and is a leader in airline sponsorships and advertising.
WOI brings over 30 years of experience and deep relationships with leading airlines and aviation hardware providers in bringing infotainment and specialized software to the airline industry. In addition, its engineers and creative services provide design, web and app development expertise that augments GEE’s already strong platform. GEE expects to realize synergies from this acquisition through customer relationships, a broader development platform and integration across its content, connectivity and digital media platforms.
“With the completion of both acquisitions, we’re excited to continue expanding our offerings to airlines and the maritime industries by growing our Digital Media Solutions and Content Services verticals,” says Dave Davis, CEO of GEE. “Digital media, coupled with inflight advertising and sponsorship, provides a burgeoning offering that will provide expanded opportunities to meet the rapidly evolving trends in the industry.
“Further, we have strengthened GEE’s development and advertising sales teams in terms of scope and depth, while also adding new customers and product offerings. We believe both deals will drive new opportunities in the coming years as we realize synergies and integrate the assets into GEE, while offering new opportunities for our customers to improve the passenger experience.”
Global Eagle Entertainment Inc. is a public company and worldwide provider of media content, connectivity systems and operational data solutions to the travel industry. Through the industry’s most comprehensive product and services platform, Global Eagle Entertainment provides airlines with a wide range of inflight solutions. These include Wi-Fi, movies, television, music, interactive software, as well as portable IFE solutions, content management services, e-commerce solutions and original content development. Serving approximately 150 airlines worldwide, Global Eagle Entertainment delivers exceptional quality and value to its customers to help them achieve their passenger experience objectives. The company’s headquarters are located in Los Angeles, California, with offices and teams located in North America, Asia, the Middle East, Europe, Africa, Oceania and South America.
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