The acquisition is expected to strengthen EMS’s aero-connectivity capabilities, enabling a far-reaching system for passenger mobile access in the cabin.
EMS’s purchase price for Formation is $40m, with the acquired company having the ability to earn additional purchase price payments of up to $15m based on its performance in near-term succeeding years. EMS expects the acquisition to be accretive and to add EBITDA of $5m to $7m in the first year post-acquisition.
Paul Domorski, President and CEO of EMS Technologies, said: 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. With Formation, EMS covers the spectrum of air-connectivity solutions, delivering the platforms and systems airlines want across multiple satellite platforms.
Nim Evatt, President and CEO of Formation, said: Formation is excited to join a well-established industry leader of aeronautical satellite communications systems and a company with so many synergies with our business. Being part of EMS will allow Formation to build on its manufacturing excellence, continue to serve our customers and more rapidly pursue new applications in our expanding aviation portfolio, including integration of in-flight information and entertainment systems.
