RTTNews | Aug 31, 2020 09:12PM EDT

21:12 Monday, August 31, 2020 (RTTNews.com) - Gogo Inc. (GOGO) said that it agreed to sell its Commercial Aviation business to Intelsat for $400 million in cash.

Intelsat expects to finance the transaction utilizing cash on hand and borrowings under its $1 billion debtor-in-possession credit facility . It 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 is expected to close before the end of the first quarter 2021.

As part of the deal, Gogo will enter into a 10-year network services agreement under which Intelsat will have exclusive access to Gogo ATG services for the CA market in North America, subject to minimum revenue guarantees of $177.5 million.

Intelsat plans to operate the Commercial Aviation business as an independent business unit, led by current Commercial Aviation President John Wade. The Commercial Aviation business will remain based in Chicago.

Read the original article on RTTNews ( https://www.rttnews.com/3125076/gogo-to-sell-commercial-aviation-business-to-intelsat-for-400-mln.aspx)

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