SOUTHLAKE, Texas and
MIAMI, Nov.
14, 2018 /PRNewswire/ -- Sabre Corporation (NASDAQ:
SABR) today announced that it has entered into an agreement to
acquire Farelogix, a recognized innovator in the travel industry
with advanced offer management and NDC order delivery technology
used by many of the world's leading airlines. Sabre expects that
upon close, the acquisition will allow the company to accelerate
delivery of its end-to-end NDC-enabled retailing, distribution and
fulfillment 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 fulfillment 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."
Building upon Farelogix's GDS- and PSS-agnostic capabilities,
Sabre expects to drive faster innovation in the dynamic and highly
competitive airline IT space to enable airlines to accelerate their
own growth and profitability while benefiting customers across the
travel ecosystem.
"For the past few years, Farelogix and Sabre have worked
together with shared customers to implement our complementary
technologies to solve some of the industry's toughest challenges.
Today's announcement is a natural evolution of the successful,
ongoing collaboration between our two companies," said Jim Davidson, CEO of Farelogix. "Sabre shares
our vision for innovation and has the leading technology,
resources, and global presence to help us scale our solutions and
grow our customer base."
Sabre's agreement to acquire Farelogix is the next step in its
broader effort to become the preferred platform at the center 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.
In addition, through its Beyond NDC program, Sabre is partnering
with a host of airlines and travel agencies to drive the travel
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.
Conference Call
Sabre will conduct a conference call today at 11 a.m. ET. The live webcast and accompanying
slide presentation can be accessed via the Investor Relations
section of the Sabre website, investors.sabre.com. A replay of the
event will be available on the website for at least 90 days
following the event.
About Sabre
Sabre Corporation is the leading
technology provider to the global travel industry. Sabre's
software, data, mobile and distribution solutions are used by
hundreds of airlines and thousands of hotel properties to manage
critical operations, including passenger and guest reservations,
revenue management, flight, network and crew management. Sabre also
operates a leading global travel marketplace, which processes more
than $120 billion of estimated travel
spend annually by connecting travel buyers and suppliers.
Headquartered in Southlake, Texas,
USA, Sabre serves customers in more than 160 countries around the
world.
About Farelogix
Farelogix is a recognized leader and
innovator in the travel industry. Its groundbreaking technology is
modernizing the airline commerce and distribution landscape, and is
used by several of the world's leading airlines. The company's
flagship Airline Commerce Gateway is a technology platform
comprised of fully integrated and optimized components for
airline-controlled distribution, shopping, pricing, merchandising,
and retailing across channels. Recognized for its pioneering role
in creating the distribution innovation known today as NDC,
Farelogix now provides NDC (Level 3 certified) distribution for
more than 20 airlines with connectivity to 10 major PSS systems.
Farelogix is headquartered in Miami,
Florida, with offices in Toronto,
Canada; and Dubai, United Arab
Emirates. For additional information, visit
farelogix.com.
Forward-looking statements
Certain statements
in this release are forward-looking statements about trends, future
events, uncertainties and our plans and expectations of what may
happen in the future. Any statements that are not historical or
current facts are forward-looking statements. In many cases, you
can identify forward-looking statements by terms such as "expect,"
"will," "expect," "may," "anticipate" or the negative of these
terms or other comparable terminology. Forward-looking statements
involve known and unknown risks, uncertainties and other factors
that may cause Sabre's actual results, performance or achievements
to be materially different from any future results, performances or
achievements expressed or implied by the forward-looking
statements. The potential risks and uncertainties include,
among others, the closing, integration and effects of the
acquisition described in this release, the financial performance of
the company expected to be acquired, dependency on transaction
volumes in the global travel industry, particularly air travel
transaction volumes, the recurring nature of revenue streams,
maintenance of the integrity of our systems and infrastructure and
the effect of any security breaches, reliance on third parties to
provide information technology services, implementation of software
solutions, exposure to pricing pressure in the Travel Network
business, the implementation and effects of new or renewed
agreements, the effects of the implementation of new accounting
standards, travel suppliers' usage of alternative distribution
models, failure to adapt to technological advancements, competition
in the travel distribution market and solutions market, the
implementation and results of our cost reduction and business
alignment program, dependence on establishing, maintaining and
renewing contracts with customers and other counterparties and
collecting amounts due to us under these agreements, dependence on
relationships with travel buyers, changes affecting travel supplier
customers, our ability to recruit, train and retain employees,
including our key executive officers and technical employees, our
collection, processing, storage, use and transmission of personal
data and risks associated with PCI compliance, adverse global and
regional economic and political conditions, including, but not
limited to, economic conditions in countries or regions with
traditionally high levels of exports to China or that have commodities-based economies
and the effect of "Brexit" and uncertainty due to related
negotiations, risks arising from global operations, reliance on the
value of our brands, the effects of litigation, failure to comply
with regulations, use of third-party distributor partners, the
financial and business effects of acquisitions, including
integration of these acquisitions, and tax-related matters,
including the effect of the Tax Cuts and Jobs Act. More information
about potential risks and uncertainties that could affect our
business and results of operations is included in Part I, Item
1A, "Risk Factors" in Sabre's Annual Report on Form 10-K for the
year ended December 31, 2017, in "Risk Factors" in Part II,
Item 1A of Sabre's Quarterly Report on Form 10-Q for the
quarter ended September 30, 2018, and in subsequent public
statements or reports we file with or furnish to the Securities and
Exchange Commission. Although we believe that the expectations
reflected in the forward-looking statements are reasonable, we
cannot guarantee future events, results, actions, levels of
activity, performance or achievements. Readers are cautioned not to
place undue reliance on these forward-looking statements. Unless
required by law, Sabre undertakes no obligation to publicly update
or revise any forward-looking statements to reflect circumstances
or events after the date they are made.
SABR-F
Contacts
Media:
sabrenews@sabre.com
Investor contact:
sabre.investorrelations@sabre.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/sabre-enters-agreement-to-acquire-farelogix-expanding-its-airline-technology-portfolio-and-accelerating-its-strategy-to-deliver-next-generation-retailing-distribution-and-fulfillment-capabilities-300750205.html
SOURCE Sabre Corporation