Sabre Unloads Travelocity Unit To Expedia For $280 Million

Sabre Corp SABR unloaded its Travelocity unit Friday to Expedia Inc EXPE for $280 million in cash, the companies said Friday.

The online consumer travel unit Travelocity has seen a recent sharp decline in revenue under a 2013 marketing agreement with Expedia, although its profitability has improved.

Under the earlier agreement, Expedia provided technology platforms for Travelocity's U.S .and Canadian websites along with providing Travelocity with supply and customer service programs.

The business model was expected to result in lower revenues to Sabre, along with significantly lower operating costs.

Travelocity's third-quarter revenue fell 44.7 percent to $89 million, while the unit posted a 116 percent increase in adjusted earnings before interest, taxes and depreciation to $16 million.

Sabre's total third-quarter revenue fell 2.5 percent to $756 million, although excluding Travelocity, it rose 9 percent.

Sabre, which completed an initial public offering in April, had previously disclosed plans to sell Travelocity's lastminute.com European travel brand.

Sabre was nearly unchanged recently, trading at $20.49; Expedia gained 1 percent, changing hands at $86.76.