Sabre Divests Hospitality Arm To TPG For $1.1B, Plans Debt Reduction

Sabre Corporation SABR announced Monday that it will sell its Hospitality Solutions business to TPG Inc. TPG for $1.1 billion in cash.

This strategic move aims to streamline operations and sharpen the company’s focus on core technology platforms.

Sabre expects to receive approximately $960 million in net proceeds after taxes and fees, which it intends to use primarily to reduce debt and strengthen its capital structure.

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Sabre CEO Kurt Ekert praised the team behind Hospitality Solutions for their transformation efforts, adding that the divestiture enables Sabre to concentrate more effectively on its airline IT and travel marketplace operations.

Meanwhile, TPG executives Tim Millikin and Paul Hackwell highlighted their commitment to helping the platform expand and adapt to the evolving needs of the hospitality industry.

Hospitality Solutions, built around Sabre's 2005 acquisition of SynXis, supports over 40% of the world's major hotel brands through its reservation and guest management SaaS platform. The business has steadily expanded, offering products like Retail Studio to help hotels better serve customers.

TPG, known for backing tech carveouts such as Boomi and McAfee, will invest in Hospitality Solutions through TPG Capital. Following the deal's close, expected by the late third quarter of 2025, Sabre will provide temporary transition services to ensure operational continuity during the handover.

TPG held cash and cash equivalents of $808.02 million as of Dec. 31, 2024.

Price Action: SABR shares are trading higher by 25.11% at $2.74, and TPG is higher by 0.80% at $46.91 at the last check Monday.

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