Sabre has completed its acquisition of Radixx, a
leading airline retailing software provider with an established
presence in the low cost carrier (LCC) space.
Sabre purchased Radixx for approximately $110
million, including payments to debt holders, using cash on hand.
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 has said that it expects an immaterial impact to its
full year 2019 results from the acquisition.
Sabre plans to operate Radixx, which expects to
generate approximately $20 million of revenue in 2019, as a standalone
subsidiary through its Airline Solutions business.
“I am excited about our partnership with Sabre
as it provides Radixx access to the power and expertise of the
world’s leading travel technology company, enabling us to
accelerate our growth and extend our addressable market,” said
John Elieson, CEO, Radixx. “Sabre will have an immediate positive
impact on our existing customers and allow us to serve airlines
previously beyond our reach.”
expects the acquisition to help the company offer retailing,
distribution and fulfillment capabilities to serve the rapidly
expanding LCC market. Radixx’s signature products include
LCC passenger service system (PSS) and internet booking engine
“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.”