Sabre, the largest travel technology provider in North America, said on Wednesday it had acquired Radixx, a seller of passenger service systems to small and budget airlines such as FlyDubai, for about $110 million in cash, including payments to debtholders.
Sabre expects Radixx will generate about $20 million of revenue in 2019.
Radixx’s flagship product is a passenger service system. This technology helps an airline take bookings on their websites, helps its agents board passengers, and helps it handle other operational tasks.
“By combining Radixx technology and expansive LCC (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 have otherwise felt their PSS (passenger services systems) and other technology options were limited,” said Sabre CEO Sean Menke. “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.”
The market for passenger service systems has consolidated in the past decade. Radixx primarily served low-cost carriers and other small airlines.
In 2015, Amadeus bought Radixx’s larger and faster-growing rival, Navitaire, for $830 million. Amadeus added Navitaire as an alternative for airlines to its Altéa passenger service system, which serves more than 100 network carriers. Amadeus has since owned a majority of the world’s roughly $5 billion airline information technology market.
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