WESTLAKE VILLAGE, Calif. & IRVINE, Calif., July 10, 2013 (GLOBE NEWSWIRE) -- Global Eagle Entertainment Inc. (Nasdaq:ENT) ("Global Eagle") today announced that it has completed the previously announced acquisition of Post Modern Group, LLC ("PMG") for up to approximately $24 million in a combination of cash and stock.
The acquisition expands and strengthens Global Eagle's relationships with airlines around the world and provides entry into the cruise line industry and other non-theatrical markets. An accretive transaction, PMG is expected to generate over $35 million in revenues and in excess of $4.5 million in full year 2013 adjusted EBITDA*. Global Eagle expects to benefit from substantial synergies that will further impact the contribution from the transaction in 2014.
"This transaction reflects our strategic plan to consolidate the top content and distribution companies serving our industry," said Dave Davis, CFO of Global Eagle Entertainment. "The addition of PMG will strengthen our technology and breadth of services, expand our customer base and provide us with entry into new markets. We look forward to working with the talented team at PMG in executing our strategy and further expanding our combined content and connectivity footprint globally."About Post Modern Group (PMG) Founded in 1993, PMG is a premier provider of digital media production and post-production services. The company's operations, which include AMP International, Ambient, Criterion Pictures and Sea Movies, provide 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 inflight entertainment systems. The company serves Hollywood studios and distributors, advertising agencies, major corporations, federal and local government entities, airlines and cruise lines worldwide. Based in Irvine, California, PMG has more than 100 staff members in ten locations worldwide. About Global Eagle Entertainment Global Eagle Entertainment Inc. is the leading full service platform offering both content and connectivity for the worldwide airline industry. Through its combined content, distribution and technology platforms, Global Eagle provides airlines and the millions of travelers they serve with the industry's most complete offering of in-flight video content, e-commerce and information services. Through its Row 44 subsidiary, Global Eagle utilizes Ku-band satellite technology to provide airline passengers with Internet access, live television, shopping and travel-related information. Currently installed on more than 480 aircraft, Row 44 has the largest fleet of connected entertainment platforms operating over land and sea globally. In addition, through its AIA division, Global Eagle provides film and television content, games and applications to more than 130 airlines worldwide. Global Eagle is headquartered in Westlake Village, California and maintains offices and support personnel around the world. Find out more at www.globaleagleent.com . * Non-GAAP Financial Information With respect to 2013 projected adjusted EBITDA of PMG, we define adjusted EBITDA as net earnings before interest expense, income taxes, depreciation and amortization, plus costs incurred at the company that will no longer be incurred after the transaction has closed. A quantitative reconciliation is not available without unreasonable efforts.