By Bev Fearis, published 17/06/20
Barcelona-based travel technology firm Accelya has swooped in to buy Farelogix just weeks after Sabre pulled out of a deal to do the same.
Sabre had announced plans back in November 2018 to acquire US software provider Farelogix, for $360 million, but wasn’t able to get approval from competition authorities.
Initially the deal was blocked by the U.S. Department of Justice, but Sabre persisted and managed to get the decision overturned in a U.S. court.
Then, in April of this year, the UK’s Competition and Marketing Authority said it also had concerns, concluding that airlines, travel agents and UK passengers would be worse off. Sabre formally backed out of the deal a few weeks later.
The acquisition by Accelya is also subject to regulatory approvals but its announcement this week said the purchase is expected to close this summer.
Terms of the new deal have not been revealed but will see more than 300 Farelogix employees, mainly based in Miami, join Accelya.
Farelogix has played a key role in creating NDC distribution and provides NDC (Level 4 certified) distribution and management solutions for more than 25 airlines worldwide with connectivity to all major passenger service systems.
Accelya said buying Farelogix would advance its vision to provide a ‘next-generation, end-to-end platform that enables airline commerce, providing a full suite of innovative retailing, distribution, and fulfilment solutions’.
“The industry we serve is facing an unprecedented set of challenges requiring increased agility and integration,” said Accelya CEO John Johnston.
“Accelya is at the forefront of travel and transport technology and our acquisition of Farelogix will enhance our capability to deliver an integrated Offer-to-Settlement platform and provide innovative solutions and greater choice for airlines worldwide.”
Jim Davidson, CEO of Farelogix, added: “This acquisition represents a tremendous opportunity for Farelogix and Accelya to accelerate innovation in technologies for airline retailing, commerce, order management, and financial settlement.”
Private equity firm Vista bought Accelya in November 2019 and is financing the Farelogix deal.
Vista Founder, Chairman and CEO Robert F. Smith said: “The combination of Accelya and Farelogix will create a next-generation digital platform to help support airline industry recovery and enable a new era in airline commerce powered by innovation, technology, and partnership.”