Sabre to challenge US DOJ lawsuit seeking to block planned acquisition of Farelogix

posted on 21st August 2019 by Justin Burns
Sabre to challenge US DOJ lawsuit seeking to block planned acquisition of Farelogix

Technology travel industry provider Sabre Corporation will challenge the lawsuit filed by the U.S. Department of Justice (DOJ) seeking to block the company’s planned acquisition of Farelogix.

Farelogix is airline technology provider, whose new distribution capability (NDC) technology is used by a number of airlines around the world.

Sabra said Farelogix brings capabilities to Sabra that will accelerate the delivery of the industry’s first end-to-end NDC-enabled solution for the retailing, distribution and fulfillment of travel.

The company is confident of the pro-competitive nature of this transaction, that it will succeed in court, and that the transaction will be completed.

Sabre president and CEO, Sean Menke said: “Together, Sabre and Farelogix will drive faster innovation in the dynamic, highly competitive airline technology space, helping airlines accelerate their growth and profitability while better serving travelers.

“We look forward to closing this transaction and to delivering the benefits it will enable for our airline and agency customers, corporations, and travelers.”

Sabra said DOJ’s claims lack a “basis in reality “and reflect a “fundamental misunderstanding of the industry”. The DOJ claims Sabre and Farelogix compete head-to-head for airline bookings in the US, but claim misstates Farelogix’s role in the industry.

The company said it and Farelogix offer complementary services, and this transaction is the continuation of an already successful collaboration between the two companies.

The airline technology sector is highly competitive, with many companies – even airlines themselves – competing to deliver next-gen retailing solutions.

Sabre said it looks forward to showing the court how dynamic this industry is and having airlines and travel agencies explain how the industry actually works.

Sabre and Farelogix have extended the termination date of their acquisition agreement to 30 April, 2020, allowing time to resolve the challenge by the DOJ. Sabre will file its formal written response to the DOJ’s complaint in court at the appropriate time.