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 US$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 US$20 million of revenue in 2019, as a standalone subsidiary through its Airline Solutions business.
John Elieson, CEO, Radixx said, “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. Sabre will have an immediate positive impact on our existing customers and allow us to serve airlines previously beyond our reach.”
Sabre 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 (IBE).
Sean Menke, Chief Executive Officer, Sabre said, “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. 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.”