Sabre preps for massive acquisition with $530M note offer
Sabre Holdings is poised to make its largest acquisition since its ill-fated billion-dollar purchase of LastMinute.com in 2005.
The target this year is most likely Abacus, the Asian-Pacific technology company it has a minority share in. Signs point to Sabre picking up the remaining 65% of shares Abacus owned by a consortium of airlines.
Late Wednesday Sabre, the Dallas technology company, disclosed its proposed offering of $530 million of senior secured notes in the private placement market.
Its move coincides with its recent reaffirmation of a “proposed acquisition”. Last week it said it expected to announce a deal within the next three months.
The offering of notes is expected to close on April 14.
The acquisition target described in official documents would be a company based outside of the US and would be a match for its Travel Network division, where its global distribution system (GDS) is housed. Abacus is also a GDS.
As Tnooz reported earlier, Sabre said the acquisition would contribute some $250 million in revenue.
Sabre’s last large purchase was Prism, a customer management system provider.
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