TPG’s private equity arm will acquire Sabre’s Companies announced that they have agreed to purchase hospitality solutions for $1.1 Billion in cash.
This divestiture allows Sabre to concentrate on its core airline IT platforms and travel marketplaces, said Kurt Ekert. Sabre is a Texas-based travel tech provider that will primarily provide software and services to airlines.
Sabre anticipates receiving approximately $960 millions in net proceeds from the $1.1. Sabre is expecting to net about $960 Million after taxes, fees and other expenses. Sabre stated that it would use the majority of this money to reduce debt.
Sabre’s Hospitality Solutions was created from Sabre’s 2005 acquisition SynXis. This central reservation system is used by hotels to collect and process reservations via their websites and mobile apps.
The division provides software and solutions to dozens of hotel brands, representing about 5 million hotel rooms at last publicized count, including hotels affiliated with Hyatt, Wyndham Hotels & Resorts, and Preferred Hotel Group.
The software-as-a-service platform allows hotels to manage room inventory, rates, and reservations from hotel websites and apps, but also through third parties like online travel agencies. Amadeus, Oracle and Vertical Booking CRS as well as SHR Windsurfer or Accor D-Edge are some of the companies with similar products.
Skift reported last September that sources said Sabre was seeking buyers for the hospitality solutions unitThough the company declined comment at the moment. In 2022, Skift reported Sabre has begun preparing the unit to be sold.
Sabre: Implications
Sabre’s recovery from the pandemic was heavily dependent on its largest margin segment, corporate business travel, which is still struggling to recover. The company has had a difficult time paying down its debts.
At the end of last December, it owed $4.49 billion. Last year, it generated revenue of $3 billion.
This sale will allow Sabre to concentrate on its core activities, including global distribution and passenger services for airlines.
William Blair advised TPG. Evercore acted as Sabre’s financial advisor. The companies expect to close the deal by September if regulatory approval is granted.
