Sabre has completed its acquisition of Abacus International, an Asia Pacific-based global distribution system (GDS).
Tom Klein, president and CEO, Sabre said, “The addition of Abacus further strengthens Sabre’s leading position in the fast-growing Asia Pacific region. Our ability to combine Sabre’s strong global technology platform capabilities with Abacus’ deep local market expertise will provide Asia Pacific airline, hospitality and travel agency customers with unprecedented innovation and service options. It also makes us an ideal technology partner for global customers seeking to grow and expand in Asia Pacific.”
Abacus serves more than 100,000 travel agents across Asia Pacific’s 59 markets and has both global and uniquely local relationships with airlines and hotels, including a portfolio of low cost airline content and Chinese airline content. Sabre, which previously owned 35 per cent of Abacus, acquired the remaining portion for net cash consideration of US$411 million. Separately, the acquisition includes new long-term distribution agreements between Sabre and the 11 Asian airlines that previously shared ownership of Abacus with Sabre. The acquisition, including associated working capital adjustments and cash acquired, was financed through cash on hand, augmented by revolver borrowings of US$70 million.
Sabre has also signed an agreement to acquire Abacus national marketing company, Abacus Distribution Systems (Hong Kong).