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
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.
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 $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:
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 $1.1 billion sale of this business is a testament to the transformation that the Hospitality Solutions team has driven over the past few years,” said. This divestiture positions Sabre to focus on our core airline IT and travel marketplace platforms. We are confident that TPG’s investment approach and expertise will drive significant value to all of Hospitality Solutions’ customers. Kurt Ekert, President and CEO of Sabre Corporation
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 guest. 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. Tim Millikin, Partner at TPG
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. 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. Paul Hackwell, Partner at TPG
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 U.S. Securities and Exchange Commission in connection with the transaction.
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 Hospitality
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, USA, with employees across the world, Sabre serves customers in more than 160 countries globally. For more information visit www.sabre.com.
For more information visit www.sabrehospitality.com.
