WESTLAKE VILLAGE, Calif., May 9, 2013 (GLOBE NEWSWIRE) -- Global Eagle Entertainment Inc. (Nasdaq:ENT) ("GEE" or the "Company") today reported financial results for the first quarter ended March 31, 2013, our first reporting period since completing a business combination in which we acquired Row 44, Inc. ("Row 44) and 86% of the issued and outstanding shares of Advanced Inflight Alliance AG ("AIA"). We were formerly known as Global Eagle Acquisition Corp. ("GEAC"), a special purpose acquisition company. The business combination closed on January 31, 2013.
Row 44 is the world's leading provider of satellite-based Internet connectivity systems to the airline industry. AIA is the leading provider of content and interactive entertainment for use in in-flight entertainment systems at over 130 airlines. Together, this combination creates the only provider of both connectivity and content solutions to Wi-Fi enabled and embedded in-flight entertainment systems.
The Company also announced that it has entered into a definitive agreement to acquire Post Modern Group (PMG) for up to $23.9 million in a combination of cash and stock. PMG is a leading provider of video production, post-production and digital content delivery services spanning TV shows, feature films, commercials, home video and live news broadcasts, as well as multi-language media for use in in-flight entertainment systems. PMG is expected to generate over $35 million in revenue and in excess of $4.5 million in adjusted EBITDA* for all of 2013. An accretive and highly complementary transaction, it is also expected to lead to more than $2.3 million in annual integration cost synergies."Our first quarter results highlight the strength of our content business and our growing connectivity footprint," said John LaValle, Chief Executive Officer. "As passenger travel increases worldwide, airlines are seeking to differentiate their brands by offering the most engaging in-flight services. Passengers are continuing to expand their use of mobile devices as they consume entertainment and stay fully connected while on the go. Supported by our strong balance sheet, we are uniquely positioned to capitalize on these trends given our proven technology and our leadership in delivering an array of content and services to airlines worldwide."