Intelsat, the communications satellite services provider, is buying the commercial aviation business of Gogo, a Chicago-based provider of in-flight broadband connectivity.

Intelsat to buy Gogo in-flight broadband connectivity

The deal is worth $400 million with the company still being under voluntary Chapter 11 bankruptcy protection, which it entered in May this year.

Intelsat aims to pair its global satellite and ground network with Gogo’s installed base of 3,000 commercial aircraft. Describing Gogo’s 2Ku antenna as best-in-class, it currently operates with 21 commercial airlines, including 9 of the top 20 global carriers.

Passengers will benefit, says Intelsat, from an “enhanced in-flight connectivity experience that delivers fast and reliable video streaming, browsing and cloud-based applications from gate to gate”. Taking the cloud to the cloud.

Intelsat’s Chief Executive Officer, Stephen Spengler said:

“Consumer demand for in-flight connectivity is expected to grow at a double-digit rate over the next decade, notwithstanding the impact of COVID-19. The addition of Gogo’s commercial aviation business provides compelling strategic value for our stakeholders and makes strong commercial sense.”

“Gogo’s business is a perfect fit with Intelsat’s expansive satellite network and infrastructure due to the breadth of Gogo’s technological solutions, global reach and operational excellence.”

The transaction is expected to close before the end of the first quarter of 2021, subject to regulatory approvals.