Posted on: 30 September 2014 by Ross McSweeny
Global Eagle Entertainment Inc. (GEE) has revealed it plans to achieve savings from the continuing integration of its acquired businesses, including Row 44, Inc., Advanced Inflight Alliance AG, IFE Services Limited and Post Modern Edit, LLC.
GEE estimates that the integration coupled with other related operational initiatives will generate aggregate annualised savings of approximately $10 million, with approximately $3.5 million of savings expected in the second half of 2014.
"We are executing on our operational plan to become more efficient and provide our customers with improved service and products," explained Dave Davis, Chief Executive Officer of GEE. "We believe that we will substantially complete the integration of our prior acquisitions in the first half of 2015, resulting in cost savings and enhanced operational efficiencies across our business."
GEE plans to close the Germany-based operations and facilities; centralise its international financial operations; and realign international and US tax structure. GEE estimates that it will incur an aggregate pre-tax charge of approximately $4.7 million to $5.2 million, all of which represents cash expenditures.
Further details from GEE’s management is expected following the third quarter 2014 financial results conference call held in November 2014.