SOUTHLAKE, Texas—Sabre Company and TPG, a worldwide various asset administration agency, introduced the signing of a definitive settlement below which TPG has agreed to accumulate Sabre’s Hospitality Options enterprise for $1.1 billion. TPG will put money into Hospitality Options by 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 progress and continued enlargement as a expertise platform for inns globally. Hospitality Options offers software program and options to greater than 40 % of the world’s main resort manufacturers. The SaaS primarily based platform serves as an built-in system of report for reservation and visitor data. 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 charges, of roughly $960 million, might 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 progress. This announcement is the newest in a sequence of strategic monetary strikes by the Firm, together with debt refinancings in December 2024 and the current compensation of April 2025 debt maturities, to:
- Reinforce Sabre’s disciplined capital allocation framework
- Enhance its capital construction
- Improve its capacity to proceed to opportunistically refinance remaining debt maturities.
These actions are per 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 strategy 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 put money into capabilities and options, similar to Retail Studio.
“Hospitality Options’ platform is central to its clients’ capacity to handle and ship nice experiences for visitors,” stated Tim Millikin, accomplice at TPG. “We have now a protracted historical past of partnering with mission-critical software program companies like Hospitality Options that – with the correct mixture of capital and operational focus – can obtain significant progress. The transaction exemplifies our thematic funding strategy and distinct carveout experience, and we stay up for working with the staff to boost and increase the Hospitality Options platform.”
“The hospitality trade continues to evolve quickly. Hospitality Options’ tailor-made providing is enabling inns of every kind to satisfy visitors the place they’re and actually prioritize their wants,” stated Paul Hackwell, Companion at TPG. “The transaction brings collectively our a long time 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 assist 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 companies settlement, pursuant to which Sabre will present sure companies following closing to help within the transition of the Hospitality Options enterprise. The transaction has been permitted by Sabre Company’s Board of Administrators and is predicted to shut by the top of the third quarter 2025, topic to customary closing situations and regulatory approvals. The closing of the transaction just isn’t topic to any financing situations.
