Notable News Spotlight: Sabre Corporation (NASDAQ:SABR)

Sabre Corporation (NASDAQ:SABR) spotted trading -9.13% off 52-week high price. On the other end, the stock has been noted 24.66% away from the low price over the last 52-weeks. The stock changed -3.01% to recent value of $24.19. The stock transacted 1287926 shares during most recent day however it has an average volume of 1963.13K shares. The company has 275.98M of outstanding shares and 272.66M shares were floated in the market.  

On Aug. 14, 2019, Sabre Corporation (NASDAQ:SABR) a leading technology provider to the travel industry, revealed that it has informed the U.S. Department of Justice (DOJ), which has been performing a lengthy and exhaustive review of the transaction, of its intent to close the deal on August 21, 2019.

Under the terms of its timing agreement with Sabre, if the DOJ decides to seek to block the transaction prior to the expected closing date, it must file its complaint in federal court before August 21. Sabre is confident in the legal and competitive merits of the acquisition and that the transaction will ultimately be completed.

We are incredibly excited to close our acquisition of Farelogix so that airlines, travel agents, corporations, and travelers can benefit from the end-to-end next-generation retailing solutions we will be able to deliver. This deal will allow us to provide our airline and agency customers with more and better choices, all while we continue to offer and invest in Farelogix’s current suite of products and services, said Sean Menke, President and CEO of Sabre. Over the past nine months, we believe we have done all we can to address the DOJ’s concerns. While we hope the DOJ will ultimately recognize that this transaction is pro-competitive, we are prepared to vigorously defend the deal in court if necessary.

Since announcing the proposed transaction last November, Sabre has been working closely with the DOJ to demonstrate to them the unquestionable value of the transaction to its airline and agency customers, consumers, and the travel ecosystem. As a combined company, Sabre and Farelogix will drive faster innovation in the dynamic, highly competitive airline technology space, helping airlines accelerate their growth and profitability while better serving travelers. Sabre believes the transaction will bring needed scale and investment to Farelogix and enable Sabre to accelerate the delivery of the industry’s first end-to-end NDC-enabled solution for the retailing, distribution and fulfillment of travel.

Sabre has committed to its airline customers and to the DOJ that after the transaction it will continue to offer Farelogix products at the same prices available or lower, and to support and invest in those products at the same level or higher. In addition, Sabre has committed to offer to extend any existing Sabre GDS or Farelogix Open Connect contract on the same terms, including price, for a period of at least three years.

While Sabre and Farelogix do not believe that litigation is appropriate in this matter, they have extended the termination date of their acquisition agreement to April 30, 2020, allowing time for any challenge by the DOJ to be resolved.

 Its earnings per share (EPS) expected to touch remained 6.50% for this year while earning per share for the next 5-years is expected to reach at 5.04%. SABR has a gross margin of 26.00% and an operating margin of 11.40% while its profit margin remained 6.10% for the last 12 months.  According to the most recent quarter its current ratio was 1 that represents company’s ability to meet its current financial obligations. The price moved ahead of 0.55% from the mean of 20 days, 4.65% from mean of 50 days SMA and performed 6.89% from mean of 200 days price. Company’s performance for the week was -2.58%, 4.36% for month and YTD performance remained 11.78%.

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