Leading technology travel provider, Sabre Corporation , has purchased airline retail platform, Radixx, for US$110 million in cash, including payments to debtholders.
Founded in 1993, Orlando-based Radixx is a passenger service system (PSS) with Internet booking engine (IBE) specialising in low cost carrier (LCC) with a strong presence in Asia Pacific, Africa, South America and Europe. It helps airlines with operational procedures that include streamlining passenger processing.
The company also offers merchandising capabilities, natively built into the PSS, which enable airlines to maximise their ancillary revenue by offering the streamlined sale of value-added services throughout all distribution channels.
Radixx expects to generate US$20 million of revenue this year.
As a combined portfolio, Sabre and Radixx will offer and comprehensive solutions for all segments of the market – from LCC to network carriers.
LCCs have grown twice as fast as full-service carriers over the past five years and now total nearly 30% of global passengers boarded annually.
Sabre foresees the acquisition to help the company offer retailing, distribution and fulfilment capabilities to serve this rapidly expanding market.
“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.”
John Elieson, CEO of Radixx, remarked the partnership would enable the company to accelerate its growth and expand its market. “Sabre will have an immediate positive impact on our existing customers and allow us to serve airlines previously beyond our reach.”
• Featured image credit: Sergey Oplanchuk/Getty Images
