EMS Technologies acquires in-flight internet provider for $40 million

16 December 2008

The Norcross, Georgia-based, EMS Technologies, provider of wireless connectivity solutions plans to enter the in-flight passenger communications business for airlines and business aircraft owners by buying a defense contract company, Formation for $40 million and the amount could increase to an additional $15 million if Formation achieves certain financial targets.

The company said that it has signed a definitive agreement to acquire Moorestown, N.J.-based Formation, a provider of airborne wireless network products that enable in-flight passenger communications with terrestrial and satellite networks and EMS expects the acquisition to be accretive and to add EBITDA of $5 million to $7 million the first year post-acquisition.

This move represents the latest in a series of strategic acquisitions to strengthen EMS's position as a leading mobile broadband and asset tracking solutions provider. The acquisition would bolster EMS's aero-connectivity capabilities, enabling a far-reaching solution for passenger mobile access in the cabin.

''Acquiring Formation signals EMS's continued investment in its aero-connectivity strategy to become a more comprehensive solutions provider. Our goal is to meet the growing demand for aeronautical communications from airlines and business aircraft owners, as well as governments,'' said EMS Technologies' President and CEO Paul Domorski.

''With Formation, EMS covers the spectrum of air-connectivity solutions, delivering the platforms and systems airlines want across multiple satellite platforms,'' he added.

''EMS now has the capabilities to adapt products and technologies from one aero-connectivity application to another, enabling the Company to get to market faster and more profitably than companies entering the market today,'' said Neil Mackay, EMS Technologies' executive vice president and chief operating officer.