QUASHING industry speculation that has been rife since January this year, Sabre yesterday announced it is fully acquiring Abacus International for US$411 million, a move that brings Sabre deeper into the Asia-Pacific region.
The GDS is presently owned by 11 Asian airlines and Sabre, which has a 35 per cent stake in Abacus.
Sabre’s acquisition, to be closed in 3Q2015, includes new long-term distribution agreements with the 11 said airlines. According to a company press release, the purchase will be funded through US$250 million in cash and an incremental net debt of US$160 million.
Abacus is active in 59 markets throughout Asia-Pacific and serves over 100,000 travel consultants in the region with a portfolio that includes LCCs and Chinese airlines.
“The Asia-Pacific travel market is the largest and fastest growing in the world,” Tom Klein, Sabre president and CEO, said in the statement.
“Acquiring Abacus immediately combines the global capabilities of Sabre with the deep local market expertise of the leading Asia-Pacific GDS. This powerful combination will give customers even more innovation and service options, while allowing Sabre to accelerate growth in a very capital-efficient way – and to gain regional synergies in all three of our businesses serving travel consultants, airlines and hospitality companies.”
The acquisition is also expected to pay off for Sabre Airline Solutions and Sabre Hospitality Solutions due to Sabre’s expanded presence in Asia-Pacific.
Abacus International’s president and CEO, Robert Bailey, commented: “We now have the opportunity to take the business forward even faster, broadening the scope within the Sabre family and with the support of our shareholder carriers. This is great news for the industry in Asia-Pacific, and we look forward to passing the benefits of integration to all sectors of this region’s diverse travel community.”
