SOUTHLAKE, Texas, Oct. 16, 2019 /PRNewswire/ -- Sabre
Corporation (NASDAQ: SABR), the leading technology provider at
the center of the business of travel, today announced its
acquisition of Radixx, a leading 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.[1] Sabre expects the acquisition to
help the company offer retailing, distribution and fulfillment
capabilities to serve this rapidly expanding market. Radixx's
signature products are a best-in-class LCC passenger service system
(PSS) and internet booking engine (IBE).
Started in 1993, Orlando-based
Radixx was built to leverage the technology industry's rapid
advances with a focus on cloud-based airline solutions that can be
deployed quickly. An established technology provider to low cost
and retail-focused carriers, Radixx supports all airline business
models with its industry leading travel e-commerce platform and
boasts a high-quality and diverse 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 – backed by best-in-class technology and
broad expertise.
"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."
Radixx uses proven technology and unique partnership models to
create innovative solutions that deliver omni-channel merchandising
and a quality traveler experience for its customers. Radixx offers
unique merchandising capabilities, natively built into the
passenger system, that enable airlines to maximize their ancillary
revenue by offering the streamlined sale of value-added services
throughout all distribution channels.
"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."
Sabre plans to operate Radixx as a standalone subsidiary through
its Airline Solutions business.
Robert W. Baird & Co. acted as exclusive financial advisor
to Radixx in the transaction.
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.
About Sabre Corporation
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 US$120 billion of global 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 Radixx
Founded in 1993, Radixx International,
Inc., headquartered in Orlando,
Florida, combines an innovative technology approach with
unique partnership models enabling airlines of all sizes and
business models to be effective retailers and efficient operators.
Radixx caters to LCC and ULCC airlines, including the support of
GDS distribution. Radixx offers a world-class Internet Booking
Engine, Radixx ezyCommerce, a cloud-based Passenger Services
System, Radixx Res, and a leading Departure Services Suite, Radixx
Go, uniquely designed to enable airlines to increase their
profitability and maximize productivity through expanded
distribution services. Since 2016, has delivered their
sixth-generation, micro-services-based passenger service system.
For more information on Radixx, please visit our website at
www.Radixx.com.
Forward-looking Statements
Certain statements herein 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," "may," "should," "would" 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 financial and business results and effects of the
acquisition described in this release and other acquisitions,
including related costs, and, as applicable, the closing and
integration of these acquisitions, the effects of any litigation
and regulatory reviews and investigations, including with respect
to these acquisitions, dependency on transaction volumes in the
global travel industry, particularly air travel transaction
volumes, including from airlines' insolvency, suspension of service
or aircraft groundings, travel suppliers' usage of alternative
distribution models, exposure to pricing pressure in the Travel
Network business, changes affecting travel supplier customers,
maintenance of the integrity of our systems and infrastructure and
the effect of any security breaches, failure to adapt to
technological advancements, competition in the travel distribution
market and solutions markets, implementation of software solutions,
reliance on third parties to provide information technology
services, the implementation and effects of new or renewed
agreements, 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, our collection, processing,
storage, use and transmission of personal data and risks associated
with PCI compliance, our ability to recruit, train and retain
employees, including our key executive officers and technical
employees, 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, failure to comply
with regulations, use of third-party distributor partners, the
effects of the implementation of new accounting standards, 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
the "Risk Factors" section in our Quarterly Report on Form 10-Q
filed with the SEC on August 1, 2019,
in the "Risk Factors" and "Forward-Looking Statements" sections in
our Annual Report on Form 10-K filed with the SEC on February 15, 2019 and in our other filings with
the SEC. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future events, outlook, guidance, 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
Media Contact:
Kristin
Hays
Kristin.hays@sabre.com
Cassidy Smith
Cassidy.Smith@sabre.com
Sabrenews@sabre.com
Investor Contact:
sabre.investorrelations@sabre.com
[1] Data per T2RL
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SOURCE Sabre Corporation