Safran Passenger Innovations (“SPI”), a provider of in-flight entertainment and connectivity (IFEC) systems for airlines and airplane manufacturers, is set to be acquired from its parent company, Safran, by an investment fund.
Kingswood Capital Management, a Los Angeles-based investor in middle-market companies, which holds a US$1.5 billion fund, has entered into a definitive agreement to acquire SPI. Matt Smith will continue to serve as SPI’s CEO, and the entire SPI leadership team will remain in place. The transaction is expected to close early next year, subject to customary legal and regulatory requirements.
The main product of SPI, which is headquartered in Brea, California, is the RAVE IFEC platform. Kingswood says that it intends to help position SPI to deliver ‘transformative, next-generation’ IFEC solutions, while ensuring seamless business continuity and operational stability.
Matt Smith, CEO of SPI, said of the deal, “Our team has always been the driving force behind RAVE’s success, and this new chapter with Kingswood empowers us to take that success to the next level. Together, we are unlocking opportunities for accelerated growth, expansion, and investing in cutting-edge technologies that will redefine the in-flight experience.
“This partnership adds significant value to our company, enabling us to strengthen our capabilities while staying true to our company culture,” added Smith. “I am confident that with the dedication of our people and the support of our new partners, we will shape a future that benefits our customers, employees, and stakeholders alike.”
Clayton Lechleiter, principal at Kingswood, said, “We have conviction in Matt’s vision and believe firmly that with RAVE, he and his team have engineered a seamless platform that is the most reliable in market and results in the lowest total cost of ownership for many respected global airline customers. The products and services SPI has developed are key elements of both the passenger experience that travellers expect and the evolving marketing channels airlines are only beginning to monetise.”
Alex Wolf, managing partner and founder of Kingswood, added, “We are elated that SPI and its RAVE platform are joining the growing Kingswood portfolio. This cross-border carve-out acquisition represents our second aerospace and defence investment at Kingswood. We saw this as an opportunity to partner with a great team with an exceptional, globally recognised product in a rapidly growing sector and are looking forward to working with Matt and the entire SPI team to support an exciting new phase of operations as a standalone company.”
