Acquisitions

12 Months Ended

Dec. 31, 2019

3. Acquisitions

Farelogix

We announced on November 14, 2018 that we have entered into an agreement to acquire Farelogix, Inc. ("Farelogix"), a travel industry innovator in the airline information technology and distribution landscape. At closing, Sabre will purchase Farelogix for $360 million, funded by cash on hand and Revolver borrowing. We have agreed to advance certain attorneys' fees incurred by Farelogix in responding to certain governmental reviews of the acquisition and in defending against certain antitrust proceedings, which have totaled $20 million for the year ended December 31, 2019. These advances will be applied against the purchase price upon closing. On August 20, 2019, the U.S. Department of Justice ("DOJ") filed a complaint seeking a permanent injunction to prevent the acquisition. The trial concluded on February 6, 2020 and the trial court has not yet issued its decision. In addition, the U.K. Competitions and Market Authority ("CMA") has referred its review of the acquisition for a Phase 2 investigation and has published its provisional findings of competition concerns. There can be no assurance that the acquisition will occur on these terms or at all.

Radixx

In October 2019, we completed the acquisition of Radixx, a provider of retailing and customer service solutions to airlines in the low-cost carrier ("LCC") market, for $107 million, net of cash acquired and funded by cash on hand. Radixx is being integrated and is managed as a part of our Airline Solutions segment.

Purchase Price Allocation

The purchase price allocation presented below is preliminary and based on information available as of the filing date of this Annual Report on Form 10-K. Primarily, we consider the accounting related to intangible assets and the associated deferred taxes to be incomplete due to ongoing analysis. We expect to finalize the purchase price allocation in the first quarter of 2020. A summary of the acquisition price and estimated fair values of assets acquired and liabilities assumed as of the date of acquisition is as follows (in thousands):


Cash and cash equivalents	$	3,348
Accounts receivable	2,587
Other current assets	244
Goodwill	82,402
Intangible assets:
Customer relationships	13,600
Developed technology	10,800
Trade name	1,400
Property and equipment, net	2,142
Deferred tax assets	2,968
Other long term assets, net	2,641
Current liabilities	(7,071)
Deferred tax liabilities	(1,583)
Other noncurrent liabilities	(2,668)
Total acquisition price	$	110,810

Under the purchase accounting method, the total purchase price was allocated to the net assets of Radixx based upon estimated fair values as of the acquisition date. The excess purchase price over the estimated fair value of the net tangible and intangible assets was recorded as goodwill, reflecting the growth potential of the business. The anticipated useful lives of the intangible assets acquired are 10 years for customer relationships, 5 years for developed technology and 18 years for the trade name.

The acquisition of Radixx did not have a material impact to our consolidated financial statements, and therefore pro forma information is not presented.