The news is out, Sabre Corporation has expanded its business with the full acquisition of APAC’s Abacus International – but what does this mean for the company’s clients?
Announced overnight, Sabre, which already held a 35 percent share in Abacus, entered a definitive agreement with the other 11 shareholders to purchase the remaining portion for some $411 million.
Still subject to regulatory approval, the transaction is expected to be complete by the third quarter of this year.
During the first six months of purchase, Sabre expects the APAC GDS to increase its revenue by approximately $120 million.
This profit is expected to climb even further next year, with an estimated revenue increase of more than $300 million and to increase Adjusted EBITDA by approximately $50 million.
This will not only strengthen the Sabre business financially, but create additional profit that could be spent towards ongoing technological upgrades to the existing GDS system.
In addition to financial gains, the purchase is also expected to have subtle benefits for the GDS’ clients.
Abacus currently serves more than 100,000 travel agents across APAC and has global and uniquely local relationships with airlines and hotels, including low-cost content and Chinese airline content.
Through the purchase, this information could soon be made available to Sabre’s existing clients.
According to Tom Klein, Sabre President and CEO, it will also give travel agents and other Sabre clients access to more innovation and service options, while allowing the company to grow globally.
He also thinks it will create synergy between the company’s businesses, which includes travel agents, airlines and hospitality companies.
“We look forward to continuing our long-term business relationships with our former partners in Abacus, and our new agreements will provide benefits and confidence to travel agents throughout the Asia-Pacific region for many years to come.”
Greg Webb, Sabre Travel Network President
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, which already provide mission-critical support to 78 airlines and thousands of hotels throughout the Asia-Pacific region.
Sabre also will continue its partnership to provide technology services to INFINI, a local Japanese GDS.