Inflight internet company Gogo announced on Tuesday that it has completed the sale of its commercial aviation (CA) business to satellite operator Intelsat. Going forward, Gogo says it plans to focus on “leveraging its ATG [air to ground] network and proprietary spectrum to serve the business aviation market.” Intelsat acquired Gogo’s CA division for $400 million in cash.
“The completion of the sale of our CA business to Intelsat marks the beginning of a new chapter for Gogo; we are a leader in business aviation and now turn our singular focus toward serving that attractive market,” said Gogo CEO Oakleigh Thorne. “Our business aviation division has proven resilient in the face of the COVID-19 pandemic, as the number of business aircraft online today has nearly returned to January levels.”
Gogo Commercial Aviation President John Wade will remain in his position following the division’s move to Intelsat. Intelsat reports that the transaction gives the company an installed base of more than 3,000 commercial aircraft. According to Gogo, it had approximately $460 million in cash on hand and net debt of approximately $770 million immediately following the closing of the sale.