Business
Sabre enters into definitive agreement to sell its Hospitality Solutions business unit to TPG for $1.1 billion
Transaction Enables Sabre to Pay Down Debt, Optimize Portfolio, and Continue Its Focus on Sustainable Growth Transaction Will Establish Hospitality Solutions
About this update from Sabre Corporation
[{"type":"text","content":"Transaction Enables Sabre to Pay Down Debt, Optimize Portfolio, and Continue Its Focus on Sustainable Growth\nTransaction Will Establish Hospitality Solutions Business as an Independent Technology Company Built for the Hospitality Industry \nSOUTHLAKE, Texas, April 28, 2025 /PRNewswire/ -- Sabre Corporation (NASDAQ: SABR), a leading technology provider to the global travel industry, and TPG, (NASDAQ: TPG), a global alternative asset management firm, today announced the signing of a definitive agreement under which TPG has agreed to acquire Sabre's Hospitality Solutions business (\"Hospitality Solutions\") for $1.1 billion in cash. TPG will invest in Hospitality Solutions through TPG Capital, the firm's U.S. and European private equity platform.\n\n \n \n \n \n \n \n\n \nThe 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.\nSabre's expected cash proceeds, net of taxes and fees, of approximately $960 million, will be used primarily to pay down debt, enabling Sabre to improve its balance sheet, optimize focus on its core business, and continue its focus on long-term sustainable growth. This announcement is the latest in a series of strategic financial moves by the Company, including debt refinancings in December 2024 and the recent repayment of April 2025 debt maturities, to:\nReinforce Sabre's disciplined capital allocation framework;Improve its capital structure; andEnhance 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.\n\"The $1.1 billion sale of this business is a testament to the transformation that the Hospitality Solutions team has driven...