COSTA MESA, Calif.--(BUSINESS WIRE)--Lumexis Corporation, a manufacturer of advanced In-flight Entertainment and Connectivity Systems, has secured a $15 million investment led by the private equity fund management company, Perseus, L.L.C. The investment agreement includes the option for an additional investment of up to $7.5 million. Existing investors PAR Capital Management and Zone Ventures participated in the financing round. Lumexis also announced that it has been awarded a large order for its FTTS™ (Fiber To The Screen™) Audio-Video-On-Demand, In-Flight Entertainment Systems for installation on the new customer’s fleet of 737-family aircraft. The airline will use the system not only to provide passenger entertainment including movies on demand, games, and music, but also to support in-seat purchases by travelers of an array of products and services. The significant cost, weight, and reliability advantages of the Lumexis system were key determinants in securing both the order and the new investment capital.
The Lumexis FTTS™ system is based on new generation open software and hardware architectures. Data is transmitted from standard central servers via fiber optic cables that run directly to and from passenger screens, providing for super-high bandwidth, less weight and high reliability – all at significantly lower cost. Competing systems that dominate the market today are based on obsolete hardware and software architectures and rely on copper wiring to transmit data to the user. Unlike the Lumexis system, the competing systems require electronics boxes at every seat and intermediate switches to direct and decode the signals. As a result, these systems are very heavy, difficult to install, expensive to maintain, and prone to failure. The Lumexis system is approximately half the weight of older, legacy systems from other suppliers, providing airlines dramatic fuel savings.
“With many investment options to choose from, this new funding from Perseus and the renewed support from our existing shareholders demonstrates the confidence that they have in the Lumexis technology and management team. The clear advantages of the FTTS™ system have also led to securing a major contract with a highly innovative airline,” stated J. Douglas Cline, Lumexis Chief Executive Officer.
Perseus Senior Managing Director Dave Davis continued, “We made this investment because of the clear benefits of the Lumexis FTTS™ system relative to the competition. Airline customers are looking for an in-flight entertainment system that is affordable, reduces fuel burn through lower weight, and is easy to maintain, operate, and upgrade. The Lumexis system delivers on all of these attributes. In addition, Doug and his team are industry veterans fully committed to excellent customer service and satisfaction.”
Ed Shapiro, PAR Capital Management Vice President, added, “We are pleased to have Perseus join us in this investment. I have known Dave Davis for several years and kept him apprised of the progress Lumexis has been making since we made our original investment in 2007. This investment, together with Lumexis’ new 737 customer, are important validations of the opportunity we see in Lumexis.”
About Lumexis Corporation
Lumexis Corporation is a developer, manufacturer and marketer of advanced in-flight entertainment and communication systems built on a core competency in fiber optics technology. With headquarters adjacent to Orange County, California’s John Wayne Airport, the company can reached at +1.714.641.4900 or on the web at www.lumexis.com.
About Perseus, L.L.C.
Perseus, L.L.C. is a private equity fund management company headquartered in Washington D.C., with an office in New York and an associated office in Munich. Perseus has invested in numerous growth equity, distressed, and buyout transactions in the United States, Canada, and Western Europe. Perseus manages seven private equity funds. Since its inception in 1995, Perseus has made investments in 62 portfolio companies and has $1.5 billion in funds under management. www.perseusllc.com