Dive Brief:
- Sabre Corporation sold its Hospitality Solutions business for $1.1 billion to global asset management firm TPG, the Texas-based travel tech provider announced Monday.
- As part of the deal, Hospitality Solutions will become a standalone business, which TPG will invest in through its TPG Capital private equity platform. Hospitality Solutions does not include Sabre's hotel B2B distribution business, which Sabre said “remains a strategic area of investment.”
- Hospitality Solutions already provides software and tech solutions to more than 40% of the world’s leading hotel brands, according to the company. Sabre expects the transaction to give the platform “dedicated resources for growth and continued expansion.”
Dive Insight:
Sabre expects to use its approximately $960 million in cash proceeds from the sale to pay down debt in a bid to improve its balance sheet, focus on its core business and prioritize sustainable growth.
"This divestiture positions Sabre to focus on our core airline IT and travel marketplace platforms,” Sabre President and CEO Kurt Ekert said in a statement, adding that the company is “confident” that TPG will “drive significant value to all of Hospitality Solutions' customers."
"The hospitality industry continues to evolve rapidly,” said TPG Partner Paul Hackwell. “We look forward to working with the team to build the platform into a comprehensive technology provider for the hospitality industry."
The deal, which has been approved by Sabre’s board of directors, is expected to close by the end of the third quarter, subject to regulatory approvals.
Sabre’s Hospitality Solutions business grew out of its purchase of SynXis in 2005 and has evolved its offerings and solutions over time.
In 2023, Sabre debuted an AI-powered lodging solution and was tapped by Hyatt to be the hotel company’s central reservation system provider.
TPG’s previous software investments include Boomi, Elite, Everfox, McAfee and Wind River.
