Sabre Corporation has struck a definitive agreement with asset management firm, TPG, to sell Sabre’s Hospitality Solutions business of US$1.1 billion. The deal will see TPG Capital, the firm’s US and European private equity platform, invest in Sabre’s Hospitality Solutions.
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% of the world’s leading hotel brands.
Sabre’s expects cash proceeds of approximately US$960 million, will be used to pay down debt, enabling Sabre to improve its balance sheet, optimise focus on its core business, and continue its focus on long-term sustainable growth.
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“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 Kurt Ekert, President and CEO of Sabre Corporation.
“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.”
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 prioritise 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, 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.
