EMS Buys In-Flight Wireless Internet Provider

EMS Technologies has signed a definitive agreement to acquire Formation, Inc., a provider of airborne wireless network products that enable in-flight passenger communications with terrestrial and satellite networks.

EMSÃ's purchase price for Formation is $40 million, with the acquired company having the ability to earn additional purchase price payments of up to $15 million based on its performance in near-term succeeding years. EMS expects the acquisition to be accretive and to add EBITDA of $5 million to $7 million the first year post-acquisition.

"Acquiring Formation signals EMSÃ'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," says EMS TechnologiesÃ' 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 says.

FormationÃ's products are its rugged servers and cabin Wireless Access Points (WAPÃ's), which enable aircraft broadband systems to extend connectivity to laptops and PDAÃ's. FormationÃ's hardware supports in-flight communications regardless of whether the connectivity is through terrestrial or satellite-based networks. Formation is an approved direct supplier to Airbus and also is a major supplier to Rockwell Collins, Aircell and Panasonic.

EMS plans to retain FormationÃ's current operations in Moorestown, N.J.

Posted to the site on 14th December 2008