Sabre has entered an agreement to acquire its old rival, Farelogix for $360 million marking the largest deal for airline distribution in recent years.
The travel tech provider said the acquisition will allow the company to accelerate delivery of its end-to-end NDC-enabling retailing, distribution and fulfilment solutions.
Based in Miami, Farelogix provides a suite of SaaS solutions that enables carriers to dynamically create, control, optimize and deliver personalized and differentiated offers across sales channels.
These airline-controlled retailing, merchandising and distribution capabilities complement Sabre’s existing retailing and merchandising solutions and future product roadmap.
“Farelogix’s investments in offer management and NDC order delivery will help us accelerate our plans to deliver future-ready retailing, distribution and fulfilment solutions that unlock increased value for the industry,” said Sean Menke, president & CEO of Sabre.
“By integrating Farelogix’s capabilities into Sabre’s leading airline technology platform, we’ll be able to offer the innovative and comprehensive solutions that airlines require, backed by best-in-class technology and the deep expertise that our teams bring to market.”
Sabre’s agreement to acquire Farelogix is the next step in its broader effort to become the preferred platform at the centre of the business of travel.
Among other innovations, Sabre recently launched its digital commercial airline platform with several carriers, delivering end-to-end personalized retailing capabilities to maximize revenue and create a differentiated brand experience.
Plus, through its Beyond NDC program, Sabre is partnering with a host of airlines and travel agencies to drive the industry forward through the design, development, integration and testing of end-to-end capabilities to process NDC-enabled offers and orders.
The acquisition and integration of Farelogix technology will help Sabre accelerate these innovation efforts.
At closing, Sabre will purchase Farelogix for approximately $360 million, funded by cash on hand and revolver borrowing. Farelogix expects full year 2018 revenue of approximately $40 million. The acquisition is expected to be neutral to Sabre’s 2019 Adjusted EPS.
The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close in late 2018 or early 2019. Until closing, Sabre and Farelogix will continue to operate as separate businesses with no immediate changes to daily operations.