In a move that has sent shockwaves through the travel technology sector, Sabre Corp., a leading provider of software and services for the global travel industry, announced today that it will sell its hospitality software platform to asset manager TPG for $1.1 billion.
As a result of this deal, shares in Sabre have jumped 19.41% as of this writing, with investors eager to capitalize on what appears to be a strategic move by the company to pare down its debt and focus on more profitable areas of its business.
The sale of the hospitality software platform is expected to help reduce Sabre’s total debt from $4.5 billion (net of cash) at December-end 2024, according to its annual filing. This represents a significant reduction in debt for the company, which has been working to strengthen its financial position over the past year.
The deal also comes as the travel industry faces uncertainty due to fears of an economic recession stemming from U.S. President Donald Trump’s sweeping import tariffs. Many airlines, including legacy carriers Delta and Southwest Airlines, have seen their shares decline in recent months amidst concerns about a potential downturn in air travel demand.
Despite these headwinds, Sabre has been working to diversify its revenue streams through strategic partnerships with major players like American Airlines and Expedia Group (EXPE). The company’s hospitality software platform serves as an integrated system of record for reservation and guest information, making it a critical component of the global travel ecosystem.
With this sale, TPG will invest in Sabre’s SynXis business unit through its U.S. and European private equity platforms. The transaction is expected to close by the end of Q3 2025.
Key Takeaways:
- Sabre Corp.’s shares have jumped 19.41% as a result of the $1.1 billion sale of its hospitality software platform to TPG.
- The deal aims to reduce Sabre’s total debt from $4.5 billion (net of cash) at December-end 2024.
- The travel industry faces uncertainty due to fears of an economic recession stemming from U.S. President Donald Trump’s sweeping import tariffs.
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