Sabre enters into definitive agreement to sell its Hospitality Solutions business unit to TPG for $1.1 billion

Core Viewpoint - Sabre Corporation has signed a definitive agreement to sell its Hospitality Solutions business to TPG for $1.1 billion in cash, allowing Sabre to focus on its core airline IT and travel marketplace platforms while optimizing its financial structure and pursuing sustainable growth [1][4][3]. Group 1: Transaction Details - TPG will acquire Sabre's Hospitality Solutions business for$1.1 billion, with expected net cash proceeds to Sabre of approximately $960 million after taxes and fees [1][3]. - The transaction will establish Hospitality Solutions as an independent technology company dedicated to the hospitality industry, providing software and solutions to over 40% of the world's leading hotel brands [2][4]. - The deal is expected to close by the end of the third quarter of 2025, pending customary closing conditions and regulatory approvals [7]. Group 2: Strategic Implications - The proceeds from the sale will primarily be used to pay down debt, improving Sabre's balance sheet and enabling a focus on its core business [3][4]. - This divestiture is part of a series of strategic financial moves by Sabre, including recent debt refinancings, aimed at achieving a long-term net leverage target of 2.5x to 3.5x [3][4]. - TPG's investment approach is expected to drive significant value for Hospitality Solutions' customers, leveraging TPG's experience in growing mission-critical software businesses [5][6]. Group 3: Business Operations - Hospitality Solutions provides an integrated system of record for reservation and guest information, enhancing operational accuracy and efficiency for hoteliers [2]. - The platform has evolved significantly since Sabre's acquisition of SynXis in 2005, with ongoing investments in capabilities and solutions [4]. - TPG aims to enhance and expand the Hospitality Solutions platform, positioning it as a comprehensive technology provider for the hospitality industry [5].