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New Farelogix Deal Justifies Vacating Sabre Opinion, DOJ Says

June 18, 2020, 4:09 PM

Travel company Farelogix Inc.'s new acquisition deal underscores the need to nix a recent court opinion approving the now-abandoned merger between Farelogix and Sabre Corp., the Justice Department says.

Barcelona, Spain-based Accelya June 16 announced plans to acquire Farelogix, a little over a month after the latter abandoned its $360 million merger with Sabre. The acquisition value and terms of the new deal weren’t disclosed by Accelya, which is owned by private equity group Vista Equity Partners.

“This new development underscores the fact that Sabre’s and Farelogix’s May 1 decision to terminate their merger agreement mooted this case challenging that prior agreement as well as the resulting appeal,” DOJ attorney Nickolai Levin said in a letter filed Wednesday with the U.S. Court of Appeals for the Third Circuit.

Farelogix and Sabre ditched their planned merger after the U.K’s competition authority moved to block the transaction. DOJ attorneys had first sued to stop the merger, but lost after Judge Leonard Stark of the U.S. District Court for the District of Delaware approved the transaction, saying the deal didn’t violate antitrust laws.

Since May 12, the DOJ has been pushing the to vacate the lower court’s opinion out of concern for its potential impact on future antitrust suits involving other technology platforms.

Attorneys for Sabre and Farelogix have asked the appellate court to dismiss the DOJ’s claims, stating that the government “manipulated” the judicial process by coordinating with U.K. regulators to force the deal’s termination.

Accelya’s acquisition of Farelogix is expected to close this summer, Farelogix said in a press release.

The case is United States v. Sabre Corp., 3d Cir., No. 20-1767, Letter filed 6/17/20.

To contact the reporter on this story: Victoria Graham in Washington at vgraham@bloomberglaw.com

To contact the editor responsible for this story: Seth Stern at sstern@bloomberglaw.com