SOUTHLAKE, Texas—Sabre Company and TPG, a world different asset administration agency, introduced the signing of a definitive settlement underneath which TPG has agreed to amass Sabre’s Hospitality Options enterprise for $1.1 billion. TPG will spend money on Hospitality Options by way of TPG Capital, the agency’s U.S. and European personal fairness platform.
The transaction will set up Hospitality Options as a standalone enterprise, offering sources for development and continued growth as a expertise platform for inns globally. Hospitality Options supplies software program and options to greater than 40 % of the world’s main resort manufacturers. The SaaS based mostly platform serves as an built-in system of report for reservation and visitor info. Hospitality Options is distinct from Sabre’s resort B2B distribution enterprise, which stays a strategic space of funding for Sabre.
Sabre’s anticipated money proceeds, web of taxes and costs, of roughly $960 million, will probably be used primarily to pay down debt, enabling Sabre to enhance its steadiness sheet, optimize deal with its core enterprise, and proceed its deal with long-term sustainable development. This announcement is the newest in a sequence of strategic monetary strikes by the Firm, together with debt refinancings in December 2024 and the latest reimbursement of April 2025 debt maturities, to:
- Reinforce Sabre’s disciplined capital allocation framework
- Enhance its capital construction
- Improve its skill to proceed to opportunistically refinance remaining debt maturities.
These actions are according to Sabre’s deal with driving long-term shareholder worth by optimizing its product portfolio and accelerating its path to a long-term web leverage goal of two.5x to three.5x.
“The $1.1 billion sale of this enterprise is a testomony to the transformation that the Hospitality Options staff has pushed over the previous few years,” stated Kurt Ekert, president and CEO of Sabre Company. “This divestiture positions Sabre to deal with our core airline IT and journey market platforms. We’re assured that TPG’s funding method and experience will drive vital worth to all of Hospitality Options’ clients.”
Sabre bought SynXis, the core of its hospitality enterprise, in 2005. Within the 20 years since, the corporate has continued to evolve the platform and spend money on capabilities and options, corresponding to Retail Studio.
“Hospitality Options’ platform is central to its clients’ skill to handle and ship nice experiences for friends,” stated Tim Millikin, companion at TPG. “We’ve a protracted historical past of partnering with mission-critical software program companies like Hospitality Options that – with the appropriate mixture of capital and operational focus – can obtain significant development. The transaction exemplifies our thematic funding method and distinct carveout experience, and we stay up for working with the staff to boost and develop the Hospitality Options platform.”
“The hospitality trade continues to evolve quickly. Hospitality Options’ tailor-made providing is enabling inns of every kind to fulfill friends the place they’re and actually prioritize their wants,” stated Paul Hackwell, Companion at TPG. “The transaction brings collectively our many years of investing expertise throughout the journey and software program sectors, and we stay up for working with the staff to construct the platform right into a complete expertise supplier for the hospitality trade.”
TPG has expertise executing company carveouts to help and develop software program companies, with investments which have included Boomi, Elite, Everfox, McAfee, and Wind River.
Along with the acquisition settlement described above, the events anticipate to enter right into a transition providers settlement, pursuant to which Sabre will present sure providers following closing to help within the transition of the Hospitality Options enterprise. The transaction has been authorised by Sabre Company’s Board of Administrators and is anticipated to shut by the top of the third quarter 2025, topic to customary closing circumstances and regulatory approvals. The closing of the transaction just isn’t topic to any financing circumstances.