By joining forces, the two companies claim to serve airline travel in the way better than others
Sabre Corporation, a technology provider at the center of the business of travel, has announced acquisition of Radixx, an airline retailing software provider with an established presence in the low cost carrier (LCC) space. LCCs have grown twice as fast as full-service carriers over the past five years and now total nearly 30 percent of global passengers boarded annually.
Sabre plans to operate Radixx as a standalone subsidiary through its Airline Solutions business.
Sabre purchased Radixx for approximately $110 million, including payments to debtholders, using cash on hand. Radixx is expected to generate approximately $20 million of revenue in 2019. The acquisition is expected to be accretive over the medium term, but modestly dilutive to Sabre’s Adjusted EPS in 2020 due to expected incremental investment in the fast-growing LCC space. Sabre expects an immaterial impact to its full year 2019 results from the acquisition.
Sabre expects the acquisition to help the company offer retailing, distribution and fulfillment capabilities to serve this rapidly expanding market. Radixx’s signature products include LCC passenger service system (PSS) and internet booking engine (IBE).
Radixx is an established technology provider to low cost and retail-focused carriers and supports all airline business models with its travel e-commerce platform and boasts a customer base in key low cost carrier markets, including Europe, South America, Asia Pacific and Africa.
As a combined portfolio, Sabre and Radixx will offer innovative and comprehensive solutions for all segments of the market – from LCC to network carriers.
“By combining Radixx technology and expansive LCC customer base with Sabre’s expertise, scale and global service capabilities, this acquisition will result in a better alternative for low cost carriers that might have otherwise felt their PSS and other technology options were limited,” said Sean Menke, chief executive officer of Sabre. “This acquisition also allows Sabre to quickly expand its footprint both geographically and in terms of scope of service with an important and rapidly growing segment of the airline industry.”
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