California residents may have heard about a proposed merger between Sabre Corporation and Farelogix, Inc. The proposed deal would be worth $360 million, but the Department of Justice has moved to block the transaction. It claims that Sabre Corporation is attempting to buy out a rival that is attempting to disrupt the travel technology space. If the deal were allowed to go through, it could hamper competition in that industry to the detriment of customers and airlines alike.

Sabre currently processes more than half of all airline bookings in the United States that are conducted through travel agencies. The president and CEO of Sabre says that the company has done everything it can to mitigate any concerns that the government might have. Furthermore, Sabre says that it will show in court that the deal is good for competition.

Despite the DOJ lawsuit, the merger is on track to close in April 2020. According to the DOJ, the sale would lead to a lack of innovation, a lack of quality and higher prices. Currently, companies are able to turn to Farelogix in an effort to extract more favorable terms from Sabre or other global distribution systems offering travel services.

When acquiring a new business, it is generally a good idea to do so with the help of an attorney. This is because it may be necessary to gain approval from regulators or deal with other issues that could delay or prevent the acquisition from occurring. An attorney may also be able to help a business owner with any due diligence that needs to be done before an offer is extended to an acquisition target. Performing due diligence may make it easier to ensure that doing a deal is in a company’s best interest.