Sabre Corporation has entered into a definitive agreement to sell its Hospitality Solutions business unit to global investment firm TPG in a $1.1 billion all-cash deal. The transaction, expected to close by the end of Q3 2025, marks a strategic move by Sabre to streamline operations, reduce debt, and sharpen its focus on core offerings in airline IT and travel marketplace platforms.

The divested business will operate as an independent technology company under TPG’s ownership, offering software and SaaS solutions to more than 40% of the world’s leading hotel brands. TPG will fund the acquisition through its U.S. and European private equity platform, TPG Capital.

Sabre anticipates net proceeds of approximately $960 million after taxes and fees, which it plans to use primarily to pay down debt. The move follows recent financial maneuvers, including a series of debt refinancings and repayments, all aimed at reaching a long-term net leverage target of 2.5x to 3.5x.

“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,” said Sabre President and CEO Kurt Ekert. “This divestiture positions Sabre to focus on our core airline IT and travel marketplace platforms.”

Hospitality Solutions, built around the SynXis platform acquired by Sabre in 2005, has grown into a mission-critical system for hotels, providing integrated reservation and guest data services. The platform includes advanced tools like Retail Studio and serves many of the largest hotel groups worldwide.

For TPG, the acquisition aligns with its strategy of investing in sector-specific, mission-critical software companies. “We have a long history of partnering with businesses like Hospitality Solutions that – with the right combination of capital and operational focus – can achieve meaningful growth,” said Tim Millikin, Partner at TPG.

TPG Partners Paul Hackwell and Tim Millikin highlighted the potential to expand Hospitality Solutions into a broader, more comprehensive platform tailored to the evolving needs of the hospitality industry.

As part of the deal, Sabre and TPG will enter into a transition services agreement to support operational continuity post-transaction. The deal has been approved by Sabre’s Board of Directors and is subject to standard regulatory approvals. Financing is not a condition to the closing.

Evercore is acting as financial advisor to Sabre, with legal counsel provided by Haynes Boone, LLP. TPG is advised by William Blair and Davis Polk & Wardwell LLP.

A conference call and webcast to discuss the transaction and Sabre’s Q1 financial results will be held on May 7, 2025.