Gogo (NASDAQ: GOGO) , one of the pioneers in in-flight internet service, has completed its deal to sell its commercial aviation unit to Intelsat (OTC: INTE.Q) . Investors are pleased to see the deal done, sending shares of Gogo up as much as 13% in early trading Tuesday.
Gogo is selling its best-known business, but not its most promising one, according to management. In early September, the company said it would shed the commercial aviation business for $400 million in cash and focus its resources on providing data and services to business jets.
The business to be sold serves about 20 commercial airlines , including nine of the global top 20, and has antennae installed on more than 3,000 aircraft.
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Why Shares of Gogo Are Higher Today