EMS Technologies to buy in-flight Internet company

The Atlanta company said it is buying Moorestown, N.J.-based Formation Inc. for $40 million, but added the company has promised to increase that amount by up to $15 million more if Formation hits certain financial targets.

EMS Technologies' Chief Executive Officer Paul Domorski said in a statement that the acquisition is designed to meet the growing demand from airlines, business aircraft owners and governments for wireless Internet connections for their planes. Formation's hottest products are servers and wireless access points that deliver broadband connections to computers inside the cabins of those planes, according to the company.

EMS Technologies said the deal is expected to close by the end of the year.

Its shares jumped $1.03, or 4.4 percent, to $24.70 in Friday afternoon trading.