An April 9 decision by the U.K.’s Competition & Markets
Authority has killed the planned merger between Sabre and Farelogix.
This morning Sabre president and CEO Sean Menke announced the
agreement is off, citing the U.K. decision that prohibited the transaction as
and Farelogix have agreed to terminate the parties’ merger agreement, which
expired at midnight on April 30. We continue to believe that the transaction
was not anti-competitive, a result confirmed by the U.S. federal district
court’s decision in Sabre’s favor," Menke says.
"Unfortunately, the United Kingdom’s
Competition and Markets Authority (CMA) – acting outside the bounds of its
jurisdictional authority – has prohibited the transaction. We strongly disagree
with the CMA’s decision."
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Sabre initially announced its plan to acquire Farelogix for $360 million in November 2018.
It had long maintained that the deal had benefits for airlines as well as the wider travel management community in terms of the ability to access ancillary elements and personalize for corporate clients.
The company says it will remain committed to a long-term strategy of "creating a new market for
It adds: "We are uniquely situated to
create solutions that expand the distribution access of rich content via the
Global Distribution System (GDS) marketplace and also help airlines create
personalized offers for their customers, including the development of
And in a
separate statement from Farelogix, the company says, “We
are disappointed that our plan to join with Sabre is not going forward.
However, due to the inherent uncertainty with any regulatory process, we have
been well prepared for this possibility. Over the past eighteen months, we have
made great strides in advancing our technology infrastructure, optimizing our
product delivery, streamlining our operational processes, and implementing new
April 7, a U.S. court decided in favor of the deal, ruling against a U.S. Department
of Justice claim that the merger – at a cost of $360 million for Sabre – would eliminate
competition and result in higher prices for consumers and less innovation for