Sabre teases $500 million acquisition again
A deal for Sabre to spend $0.5 billion to acquire a fellow travel technology company appears to have been delayed for a few months.
All indications so far are that Sabre will finally consummate its distant marriage to Abacus International by snapping up the remaining 65% of shares it does not already own.
Sabre informed the markets in January that it would be entering into an acquisition to the tune of $500 million to buy a company for its Travel Network division.
This was slated to happen by the end of March this year.
In a new filing to the Securities and Exchange Commission last week, Sabre disclosed a few more details about the potential acquisition, not least that it would now possibly be taking place during the second quarter of this year.
Sabre confirmed that the deal would be for a company based outside of the US and would close during the same or subsequent three-month period.
It also outlined how it could potentially pay for the deal ($500 million including advisory and financing costs).
“We expect to meet these funding needs through some combination of cash on hand, revolver draw and debt financing.”
If the new company was included in the FY 2014 balance sheet, Sabre says the acquisition would contribute some $250 million in revenue and seen a “modest increase” to the overall adjusted EBITDA.
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