Sabre enters into definitive agreement to sell its Hospitality Solutions business unit to TPG for $1.1 billion
Sabre (NASDAQ: SABR) has entered into a definitive agreement to sell its Hospitality Solutions business unit to TPG for $1.1 billion in cash. The transaction will establish Hospitality Solutions as a standalone business, currently serving over 40% of the world's leading hotel brands.
The deal is expected to generate net cash proceeds of approximately $960 million after taxes and fees, which Sabre plans to use primarily for debt reduction. This strategic move aligns with Sabre's goal of achieving a long-term net leverage target of 2.5x to 3.5x.
The transaction, expected to close by the end of Q3 2025, will allow Sabre to focus on its core airline IT and travel marketplace platforms. The deal includes a transition services agreement to facilitate the business handover. TPG will invest through its TPG Capital private equity platform, leveraging its experience in corporate carveouts and software businesses.
Sabre (NASDAQ: SABR) ha firmato un accordo definitivo per vendere la sua divisione Hospitality Solutions a TPG per 1,1 miliardi di dollari in contanti. L'operazione trasformerà Hospitality Solutions in un'azienda indipendente, che attualmente serve oltre il 40% dei principali marchi alberghieri a livello mondiale.
Si prevede che l'accordo genererà un ricavo netto in contanti di circa 960 milioni di dollari dopo tasse e commissioni, che Sabre intende utilizzare principalmente per ridurre il debito. Questa mossa strategica è in linea con l'obiettivo di Sabre di raggiungere un rapporto di leva finanziaria netta a lungo termine tra 2,5x e 3,5x.
La transazione, che dovrebbe concludersi entro la fine del terzo trimestre 2025, permetterà a Sabre di concentrarsi sulle sue piattaforme principali dedicate all'IT per compagnie aeree e al marketplace dei viaggi. L'accordo include un contratto di servizi di transizione per agevolare il trasferimento dell'attività. TPG investirà tramite la sua piattaforma di private equity TPG Capital, sfruttando la propria esperienza in scorpori aziendali e nel settore software.
Sabre (NASDAQ: SABR) ha firmado un acuerdo definitivo para vender su unidad de negocio Hospitality Solutions a TPG por 1.100 millones de dólares en efectivo. La transacción establecerá Hospitality Solutions como un negocio independiente, que actualmente atiende a más del 40% de las principales marcas hoteleras del mundo.
Se espera que el acuerdo genere ingresos netos en efectivo de aproximadamente 960 millones de dólares después de impuestos y comisiones, que Sabre planea usar principalmente para reducir su deuda. Esta estrategia está alineada con el objetivo de Sabre de alcanzar un apalancamiento neto a largo plazo entre 2.5x y 3.5x.
La transacción, que se espera cierre antes de finales del tercer trimestre de 2025, permitirá a Sabre enfocarse en sus plataformas principales de TI para aerolíneas y el mercado de viajes. El acuerdo incluye un contrato de servicios de transición para facilitar la transferencia del negocio. TPG invertirá a través de su plataforma de capital privado TPG Capital, aprovechando su experiencia en escisiones corporativas y negocios de software.
Sabre (NASDAQ: SABR)는 자사의 Hospitality Solutions 사업부를 TPG에 현금 11억 달러에 매각하는 최종 계약을 체결했습니다. 이번 거래를 통해 Hospitality Solutions는 전 세계 주요 호텔 브랜드의 40% 이상을 서비스하는 독립적인 사업체로 자리매김하게 됩니다.
이 거래는 세금 및 수수료 후 약 9억 6천만 달러의 순현금 수익을 창출할 것으로 예상되며, Sabre는 이를 주로 부채 상환에 사용할 계획입니다. 이번 전략적 조치는 Sabre가 장기적으로 2.5배에서 3.5배 사이의 순레버리지 목표를 달성하려는 계획과 일치합니다.
이 거래는 2025년 3분기 말까지 완료될 예정이며, Sabre가 항공사 IT 및 여행 마켓플레이스 핵심 플랫폼에 집중할 수 있도록 합니다. 거래에는 사업 인수를 원활하게 하기 위한 전환 서비스 계약이 포함되어 있습니다. TPG는 기업 분할 및 소프트웨어 사업 경험을 활용하여 TPG Capital 사모펀드 플랫폼을 통해 투자할 예정입니다.
Sabre (NASDAQ : SABR) a conclu un accord définitif pour vendre son unité commerciale Hospitality Solutions à TPG pour 1,1 milliard de dollars en espèces. Cette transaction fera de Hospitality Solutions une entreprise indépendante, qui dessert actuellement plus de 40 % des principales marques hôtelières mondiales.
Cette opération devrait générer un produit net en espèces d'environ 960 millions de dollars après impôts et frais, que Sabre prévoit d'utiliser principalement pour réduire sa dette. Ce mouvement stratégique s'aligne sur l'objectif de Sabre d'atteindre un ratio d'endettement net à long terme compris entre 2,5x et 3,5x.
La transaction, dont la clôture est prévue d'ici la fin du troisième trimestre 2025, permettra à Sabre de se concentrer sur ses plateformes principales dédiées à l'informatique aérienne et au marché du voyage. L'accord comprend un contrat de services de transition pour faciliter le transfert de l'activité. TPG investira via sa plateforme de capital-investissement TPG Capital, tirant parti de son expérience dans les scissions d'entreprises et les activités logicielles.
Sabre (NASDAQ: SABR) hat eine endgültige Vereinbarung zum Verkauf seiner Hospitality Solutions Geschäftseinheit an TPG für 1,1 Milliarden US-Dollar in bar abgeschlossen. Die Transaktion wird Hospitality Solutions als eigenständiges Unternehmen etablieren, das derzeit über 40 % der führenden Hotelmarken weltweit bedient.
Es wird erwartet, dass der Deal nach Steuern und Gebühren einen Netto-Cash-Erlös von etwa 960 Millionen US-Dollar generiert, den Sabre hauptsächlich zur Schuldenreduzierung verwenden will. Dieser strategische Schritt steht im Einklang mit Sabres Ziel, eine langfristige Nettoverschuldung von 2,5x bis 3,5x zu erreichen.
Die Transaktion, die bis Ende des dritten Quartals 2025 abgeschlossen sein soll, ermöglicht es Sabre, sich auf seine Kernplattformen für Airline-IT und den Reisemarktplatz zu konzentrieren. Der Deal beinhaltet eine Übergangsvereinbarung, um die Geschäftsübergabe zu erleichtern. TPG wird über seine Private-Equity-Plattform TPG Capital investieren und dabei seine Erfahrung mit Unternehmensausgliederungen und Softwareunternehmen nutzen.
- Sale will generate substantial cash proceeds of $960 million net of taxes
- Transaction enables significant debt reduction and balance sheet improvement
- Strategic focus optimization on core airline IT and travel marketplace platforms
- Deal values the division at $1.1 billion, demonstrating strong business value
- Divestiture of a significant business unit serving 40% of leading hotel brands
- Loss of recurring revenue stream from hospitality solutions segment
Insights
Sabre's $1.1B sale of Hospitality Solutions to TPG improves balance sheet, reduces debt, and sharpens strategic focus.
This $1.1 billion sale represents a significant financial transaction that directly improves Sabre's balance sheet. The deal provides Sabre with approximately
The transaction is part of a broader financial strategy that includes recent debt refinancings in December 2024 and repayment of April 2025 debt maturities. By divesting the Hospitality Solutions business, Sabre can optimize its product portfolio and focus on its core airline IT and travel marketplace platforms.
This strategic move allows Sabre to concentrate resources on its primary growth areas while improving its capital structure. From TPG's perspective, they're acquiring a software platform that serves over
This divestiture represents a strategic portfolio optimization for Sabre. By selling the Hospitality Solutions business while retaining its hotel B2B distribution business, Sabre is refining its operational focus while maintaining strategic exposure to the hospitality sector.
The transaction establishes Hospitality Solutions as an independent company with dedicated resources for growth, potentially benefiting the platform's hotel customers. For TPG, this acquisition aligns with their investment approach in mission-critical software businesses - they specifically cite their experience with corporate carveouts including Boomi, Elite, Everfox, McAfee, and Wind River.
The transition services agreement mentioned ensures business continuity during the ownership change. This type of focused divestiture is a common strategy for technology companies seeking to optimize their business portfolio and resource allocation.
The
Transaction Enables Sabre to Pay Down Debt, Optimize Portfolio, and Continue Its Focus on Sustainable Growth
Transaction Will Establish Hospitality Solutions Business as an Independent Technology Company Built for the Hospitality Industry
The transaction will establish Hospitality Solutions as a standalone business, providing dedicated resources for growth and continued expansion as the core technology platform for hotels globally. Hospitality Solutions provides software and solutions to more than 40 percent of the world's leading hotel brands. The SaaS based platform serves as an integrated system of record for reservation and guest information, enabling hoteliers to operate with greater accuracy and efficiency. Hospitality Solutions is distinct from Sabre's hotel B2B distribution business, which remains a strategic area of investment for Sabre.
Sabre's expected cash proceeds, net of taxes and fees, of approximately
- Reinforce Sabre's disciplined capital allocation framework;
- Improve its capital structure; and
- Enhance its ability to continue to opportunistically refinance remaining debt maturities.
These actions are consistent with Sabre's focus on driving long-term shareholder value by optimizing its product portfolio and accelerating its path to a long-term net leverage target of 2.5x to 3.5x.
"The
Sabre purchased SynXis, the core of its hospitality business, in 2005. In the 20 years since, the Company has continued to evolve the platform and invest in capabilities and solutions, such as Retail Studio. Today, a number of the largest and most premium hotel brands in the world rely on Hospitality Solutions as their central reservation platform.
"Hospitality Solutions' platform is central to its customers' ability to manage and deliver great experiences for guests," said Tim Millikin, Partner at TPG. "We have a long history of partnering with mission-critical software businesses like Hospitality Solutions that – with the right combination of capital and operational focus – can achieve meaningful growth. The transaction exemplifies our thematic investment approach and distinct carveout expertise, and we look forward to working with the team to enhance and expand the Hospitality Solutions platform."
"The hospitality industry continues to evolve rapidly. Hospitality Solutions' tailored offering is enabling hotels of all types to meet guests where they are and truly prioritize their needs," said Paul Hackwell, Partner at TPG. "The transaction brings together our decades of investing experience across the travel and software sectors, and we look forward to working with the team to build the platform into a comprehensive technology provider for the hospitality industry."
TPG has deep experience executing corporate carveouts to support and grow innovative software businesses, with investments that have included Boomi, Elite, Everfox, McAfee, and Wind River.
In addition to the purchase agreement described above, the parties expect to enter into a transition services agreement, pursuant to which Sabre will provide certain services following closing to assist in the transition of the Hospitality Solutions business. The transaction has been approved by Sabre Corporation's Board of Directors and is expected to close by the end of the third quarter 2025, subject to customary closing conditions and regulatory approvals. The closing of the transaction is not subject to any financing conditions.
For further information regarding the terms and conditions contained in the definitive transaction agreement, please see Sabre's Current Report on Form 8-K, which will be filed with the
Conference Call
Sabre Corporation will host a conference call and webcast on May 7, 2025 at 9:00 am Eastern Time to discuss the Company's first quarter financial results, business highlights, and forward outlook, as well as details about the transaction. Access to the webcast and the accompanying slides are available on the Investor Relations section of the Company's website at investors.sabre.com. A replay of the audio webcast will be archived on the Company's website following the live event.
Advisors
Evercore is acting as the financial advisor to the Company, and Haynes Boone, LLP is serving as legal counsel to the Company. William Blair is acting as the financial advisor to TPG. Davis Polk & Wardwell LLP is serving as legal counsel to TPG.
About Sabre Corporation
Sabre Corporation is a leading technology company that takes on the biggest opportunities and solves the most complex challenges in travel. Sabre harnesses speed, scale and insights to build tomorrow's technology today – empowering airlines, hoteliers, agencies and other partners to retail, distribute and fulfill travel worldwide. Headquartered in Southlake, Texas,
About TPG
TPG is a leading global alternative asset management firm, founded in
Website Information
We routinely post important information for investors on the Investor Relations section of our website, investors.sabre.com, on our LinkedIn account, and on our X account, @Sabre_Corp. We intend to use the Investor Relations section of our website, our LinkedIn account, and our X account as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, our LinkedIn account, and our X account, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website, our LinkedIn account, or our X account is not incorporated by reference into, and is not a part of, this document.
Forward Looking Statements
Statements made in this press release that are not descriptions of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on management's current expectations and assumptions and are subject to risks and uncertainties. Any statements that are not historical or current facts are forward-looking statements, including those related to the transaction. In many cases, you can identify forward-looking statements by terms such as "expect," "guidance," "outlook," "trend," "on course," "on track," "target," "potential," "benefit," "goal," "believe," "plan," "confident," "anticipate," "indicate," "trend," "position," "optimistic," "will," "forecast," "continue," "strategy," "estimate," "project," "may," "should," "would," "intend," or the negative of these terms or other comparable terminology. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. More information about potential risks and uncertainties that could affect our business and results of operations is included in the "Risk Factors" and "Forward-Looking Statements" sections in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 20, 2025, and in our other filings with the SEC. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, outlook, guidance, results, actions, levels of activity, performance or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. Unless required by law, we undertake no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.
SABR-F
Media Contacts
Sabre
Cassidy Smith-Broyles
cassidy.smith-broyles@sabre.com
SabreNews@sabre.com
TPG
Courtney Power
media@tpg.com
Investor Contact
Jim Mathias
Jim.mathias@sabre.com
sabre.investorrelations@sabre.com
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FAQ
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