Travel technology provider Sabre Corporation has announced the acquisition of Radixx, a leading airline retailing software provider with an established presence in the low-cost carrier (LCC) market.
Sabre purchased Radixx for approximately $110 million, including payments to debt holders, using cash on hand. The company plans to operate Radixx as a standalone subsidiary through its Airline Solutions business.
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. 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).
“By combining Radixx’s 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.
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.
“Our partnership with Sabre 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 Radixx CEO John Elieson.
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.