Sabre is selling its Hospitality Solutions business to asset-management firm TPG for $1.1 billion in cash. The deal is expected to close by the end of the third quarter, pending regulatory approvals.
TPG plans to invest in the business via its U.S. and Europe private equity platform TPG Capital.
Hospitality Solutions is one of two businesses Sabre operates. The other is Travel Solutions, which includes the GDS operations. Last year, Hospitality Solutions revenue increased 7% year over year, to $347 million. It is a fraction of Sabre's Travel Solutions business, which had 2024 revenue of $2.7 billion, up 4% year over year.
Wall Street responded favorably to news of the sale, with Sabre stock soaring more than 25% on Monday morning.
According to a release, Hospitality Solutions will be a standalone business under TPG. The release estimated the business provides software and solutions "to more than 40% of the world's leading hotel brands."
Sabre noted that Hospitality Solutions is separate from its B2B hotel distribution business, which remains part of the company.
Once the transaction is complete, Sabre expects cash proceeds of $960 million, which it will use to pay down debt and focus on long-term growth.
"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," Sabre president and CEO Kurt Ekert 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."
Sabre plans to enter a transition services agreement with TPG to assist once the transaction is complete.
TPG envisions opportunity for growth.
"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," TPG partner Tim Millikin said.
Parts of Hospitality Solutions have been with Sabre since it purchased SynXis in 2005.