Global travel technology provider Sabre Corporation has revealed that it set the wheels in motion to acquire Farelogix, a travel tech firm that produces advanced offer management and NDC order delivery technology.
As part of its portfolio, Farelogix offers clients a full range of Software-as-a-Service solutions that help airlines to create and optimise customise offers across sales channels.
Though the prospective acquisition is still in its early stages, with its successful conclusion, Sabre would have the means to advance its end-to-end NDC-enabled retailing, distribution and fulfilment solutions.
Commenting on the announcement, Sean Menke, president & CEO of Sabre, said: “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.
“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.”
It has been reported that Sabre will purchase Farelogix for an estimated sum of $360m, funded by cash on hand and revolver borrowing. Additionally, Farelogix projects 2018 revenues will reach approximately $40m. The successful acquisition is projected to be neutral against Sabre’s 2019 Adjusted EPS.
Jim Davidson, CEO of Farelogix, said: “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.
“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.”