M&A Transaction Spotlight
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Capstone Partners View Prior Notable Deals M&AInvestment Transaction Banking Advisors Spotlight Acquiror Target Deal Rationale/Commentary LiveTV provides In-flight satellite television, radio content and wireless Internet access for passenger airlines globally. JetBlue Airways acquired LiveTV in September of 2002 for Deal Summary $80.2 million. Although having experienced some growth in Date: 3/14/2014 the early years, the business unit’s expansion has been Transaction Value: $400M limited as JetBlue sought to maintain its competitive advantage in inflight entertainment and was essentially % Sought: 100% subsidizing these costs for direct competitors. Consideration: Cash Thales Group designs and manufactures a broad range of aerospace electronic systems, spacecraft, military systems, security software, and transportation control systems for businesses and government agencies worldwide. The Valuation Metrics acquisition of LiveTV will provide significant upside for Thales Trailing Revenue Multiple: 5.6x in live television and broadband access for aviation as it Trailing EBITDA Multiple: NA seeks a dominate position in the high-growth in-flight entertainment market. Multiple on $ Invested: 5.0x Deal Value Per Employee: $890K With 2013 revenue at $72 million and a multiple of 5.6x, the $400 million sale successfully concludes a three year effort to divest the business unit. Although growth had been relatively Investors flat in recent years, LiveTV was forecast to reach $150 million JetBlue Airways in revenue in 2014, which equates to 2.7 times projected revenue. The acquisition was a notable move by JetBlue Airways, netting the airline a substantial profit and achieving around a five-fold return. Capstone Partners CapstoneInvestment BankingPartners Advisors 1 Investment Banking Advisors 1 .