Sabre Corporation paid $110 million to acquire Radixx, a provider of airline retailing software to low cost carriers, this week.
Travel technology corporation Sabre completed the acquisition while it awaits the outcome of a US Justice Department (DoJ) investigation into its $360-million acquisition of Farelogix last November.
The DoJ blocked the company’s deal for Farelogix, a leader in developing new distribution capability (NDC) technology for airline retailing, with an antitrust lawsuit in August.
Orlando-based Radixx offers cloud-based airline systems including passenger service systems (PSS) and an e-commerce platform
In a statement, Sabre said it expects the Radixx acquisition “to help the company offer retailing, distribution and fulfilment capabilities” in the low-cost carrier market.
Sean Menke, Sabre chief executive, said: “By combining Radixx technology and expansive low-cost carrier 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 otherwise have felt their PSS and other technology options were limited.
“The acquisition also allows Sabre to expand its footprint quickly both geographically and in terms of scope of service with a rapidly growing segment of the airline industry.”
Radixx chief executive John Elieson said: “Sabre will have an immediate positive impact on our existing customers and allow us to serve airlines previously beyond our reach.”
Sabre plans to operate Radixx as a standalone subsidiary through its Airline Solutions business.
Radixx is expected to generate $20 million in revenue in 2019.
Sabre has said the DoJ’s allegations over its Farelogix deal “lack a basis in reality and reflect a fundamental misunderstanding”.
Court papers filed by the DoJ accuse Sabre of seeking “to eliminate” a competitor by acquiring it”.
The UK Competition and Markets Authority (CMA) has also referred the Sabre-Farelogix deal for investigation.
The CMA imposed a £20,000 penalty on Sabre last week for a “failure to comply” with requirements to submit documents relating to the Farelogix acquisition.