- Financial terms of the transaction were not disclosed.
TA Associates, a leading global growth private equity firm, today announced it has completed a significant investment in Radixx International, Inc., an industry-leading provider of travel distribution and passenger service system software for airline reservations, distribution and merchandising. Financial terms of the transaction were not disclosed.
Radixx offers a cloud-based SaaS Passenger Service System (PSS) designed to help airlines increase profitability and maximize productivity through expanded distribution of products and services. The company’s product suite features flexible, modern technology that allows airlines to sell to ticketed passengers at all touch points – online, via call centers and at airports – and through multiple channels, including directly to consumers, via travel agents and tour operators, and through global distribution systems. Radixx’s solution provides airlines with a number of capabilities such as dynamically setting fare rules and prices, distributing inventory, offering ancillary sales at airports, managing passenger check-in, and enabling virtually all methods and types of payment in a myriad of currencies. The company also has a standalone, web-based frequent flyer offering designed to provide airlines with effective loyalty management programs. Radixx serves over 40 customers across six continents in over 20 countries. Founded in 1993, Radixx is headquartered in Orlando, Florida.
“We believe Radixx is very well positioned in the PSS market and experiencing significant momentum, particularly in developing countries,” said Elizabeth de Saint-Aignan, a Principal at TA Associates who will join the Radixx Board of Directors. “Radixx provides a modern, flexible and scalable platform that can scale with customers, meeting the complex technology needs of airlines of all sizes from smaller low-cost carriers to large full-service airlines. We are pleased to complete this proprietary investment in Radixx and to use our resources to help further grow the company.”
“We see the investment by an experienced firm like TA Associates as a notable milestone in the evolution of Radixx, indicative not only of our success to date, but also the prospects for considerable further growth,” said Ron Peri, CEO & Chairman, Radixx International, Inc. “We believe our flexible and dynamic PSS enterprise solution offers notable competitive advantages compared with legacy systems, and we are confident it will continue to prove highly attractive to innovative carriers. We welcome TA as our first institutional investor and look forward to a close collaboration in building significant additional value in Radixx.”
According to Technavio, the global low-cost carrier market is expected to continue its rapid expansion, with an estimated compound annual growth rate (CAGR) of 10.4% from 2015 to 2019. By region, CAGR in Asia Pacific, the Americas, and Europe, the Middle East and Africa (EMEA) is forecast at 20%, 5% and 0.9%, respectively, during this period. On an airline seats basis, market capacity is expected to increase from 1.496 million seats in 2014 to 2.456 million in 2019.
“Global industry deregulation and resulting fare decreases have been critical to the rapid growth in air travel in developed and developing nations, providing access to air travel for historically underrepresented groups,” said Kurt R. Jaggers, a Managing Director at TA Associates who will also join the Radixx Board of Directors. “Radixx serves airlines of all sizes with modern technology enabling ticketed and ticketless sales, and allows airlines to operate profitable business models. Given the strength of its market position, we are confident that Radixx will continue to benefit from the rapid growth in air travel.”
Goodwin provided legal counsel services to TA Associates. Seyfarth Shaw served as legal counsel to Radixx.