Gogo Announces Entry into Agreement to Sell its Commercial Aviation Business to Intelsat for $400 Million in Cash
Enhances Financial Flexibility and Positions Gogo to Accelerate Growth in Profitable Business Aviation Segment
CHICAGO, Aug. 31, 2020 /PRNewswire/ — Gogo Inc. (NASDAQ: GOGO) (“Gogo”) today announced it has entered into a definitive agreement to sell its Commercial Aviation (CA) business to Intelsat S.A. (OTC: INTEQ) (“Intelsat”) for $400 million in cash, subject to customary adjustments.
The Gogo Board of Directors has approved the transaction. Intelsat expects to finance the transaction utilizing cash on hand and borrowings under its $1 billion debtor-in-possession credit facility and has obtained support from key economic stakeholders, as well as approval from the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division, to complete the acquisition. The transaction, which is expected to close before the end of the first quarter 2021, remains subject to customary closing conditions and certain regulatory approvals.
“Following a competitive strategic review process, we’re confident