Specialized communications company Apcela today inked a definitive agreement to acquire the SmartSky air-to-ground (ATG) network, with the deal set to close by year-end. SmartSky ceased operations on August 16 after spending years and hundreds of millions of dollars to build and stand up its ATG airborne connectivity network to compete with Gogo.
Those with SmartSky systems installed on their aircraft will be able to reconnect to the ATG network when Apcela “turns on the switch.” The company's CEO Mark Casey told AIN this should happen in the next 60 days.
Apcela said it plans to combine SmartSky’s inflight technology with its advanced networking platforms in both the business and commercial aviation markets. Without specifying investments in new technology, it indicated that other as-yet-undisclosed partners involved in advanced networking, mission-critical security, and avionics will be involved in the relaunched company to “bring new levels of innovation to inflight connectivity solutions.”
The company has 20 years of experience in the communications network industry and built and managed SmartSky’s terrestrial network. While the U.S.-based group is new to the airborne connectivity consumer market, it does have a two-aircraft flight department and thus understands the end-user experience, Casey said.
“By integrating SmartSky’s capabilities and Apcela’s advanced networking platforms, Apcela will launch a new aviation centric business that will provide unmatched performance and security, ensuring that airlines, corporate jet fleets, and other operators have access to fast, secure, and scalable solutions in real-time, anywhere,” the company said.
Casey added that the SmartSky service will relaunch with some upgrades, including faster speeds and more security. He also intends to “reduce friction” for SmartSky installations by shipping kits that can be fitted on airplanes via field approvals instead of more costly supplemental type certificates.
The acquisition of SmartSky, which is expected to be completed by year-end, will mark the launch of Apcela’ new aviation business unit. It would appear that at least some of the company’s leadership team will be retained, but financial terms for the transaction have not been disclosed.
“We are thrilled to join with Apcela to take the SmartSky network to the next level,” said Mike Dodson, SmartSky’s former chief network officer. “Apcela’s global reach and networking expertise are the perfect complements to our cutting-edge inflight connectivity solutions. This partnership will accelerate innovation in inflight connectivity and offer customers an unparalleled connected experience.”
Beyond the business aviation sector, Apcela is looking to introduce secure ACARS messaging for airlines. In the longer term, it intends to tap its expertise in secure communications to develop command-and-control applications for remotely piloted aircraft through its new SmartSky division.
The deal was announced less than a month after Gogo Business Aviation's surprise move to acquire satellite communications rival Satcom Direct. Under the agreement, Satcom Direct will receive $375 million in cash and five million shares of Gogo stock at closing and up to an additional $225 million in payments tied to realizing certain performance thresholds over the next four years. The transaction, announced on September 30, is expected to close by year-end.