Sabre Corporation, a leading technology provider at the centre of the business of travel, has acquired Radixx, a leading airline retailing software provider with an established presence in the low cost carrier (LCC) space, for $110 million, including payments to debtholders, using cash on hand.
LCCs have grown twice as fast as full-service carriers over the past five years and now total nearly 30 per cent 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).
Radixx is expected to generate approximately $20 million of revenue in 2019.
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, said the statement from 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, it added.
On the acquisition, Sabre CEO Sean Menke said: "By combining Radixx technology and expansive LCC customer base with its 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."
Sabre plans to operate Radixx as a standalone subsidiary through its Airline Solutions business.
“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,” he added.
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.
It 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,” remarked 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,” he added.
Robert W. Baird & Company acted as exclusive financial advisor to Radixx in the transaction.-TradeArabia News Service