Sabre to acquire Abacus International

Sabre Corporation entered (14-May-2015) into a definitive agreement to acquire Abacus International, the leading global distribution system (GDS) in the Asia Pacific region. Abacus is currently owned by a consortium of 11 Asian airlines along with Sabre, which has a 35% stake in the company.

• Abacus will operate as a region of Sabre Travel Network, and Sabre expects its expanded Asia-Pacific direct presence will benefit Sabre Airline Solutions and Sabre Hospitality Solutions;
• Sabre will continue its partnership to provide technology services to INFINI, a local Japanese GDS;
• Subject to regulatory approvals and other closing conditions, the transaction is expected to close in 3Q2015;
• Sabre will purchase the remaining portion of Abacus for net cash consideration of USD411 million;
• The acquisition, including associated working capital adjustments and cash acquired, is expected to be financed through approximately USD250 million in cash on hand, augmented by incremental net debt of approximately USD160 million;
• Assuming a 3Q2015 closing, Sabre expects the transaction will increase 2015 revenue by approximately USD120 million, be approximately neutral to 2015 Adjusted EPS and modestly accretive to current-year Adjusted EBITDA;
• In 2016, Sabre expects the transaction to increase revenue by more than USD300 million, to increase Adjusted EBITDA by approximately USD50 million and to be accretive to Adjusted EPS by approximately USD0.05;
• Separately, the acquisition includes new long-term distribution agreements between Sabre and the 11 airline owners of Abacus. [more - original PR]