Southlake-based travel tech giant Sabre (Nasdaq: SABR) and TPG, a leading private equity firm headquartered in Fort Worth and San Francisco, have inked a 10-figure deal that will impact hotels around the globe.
TPG (Nasdaq: TPG) is acquiring Sabre’s Hospitality Solutions business for $1.1 billion in cash, funding the deal via TPG Capital, the firm’s U.S. and European PE platform.
As a result, Hospitality Solutions will become a standalone business, providing dedicated resources for growth and continued expansion as the core technology platform for hotels around the world.
Hospitality Solutions currently provides software and solutions to more than 40% of the world’s leading hotel brands, Sabre noted. The SaaS-based platform serves as “an integrated system of record” for reservation and guest information, enabling hoteliers to operate with “greater accuracy and efficiency,” the company said.
Sabre noted that its Hospitality Solutions business is distinct from Sabre’s hotel B2B distribution business, which remains “a strategic area of investment” for the company.
Sabre shifts focus to its core airline IT & travel marketplace platforms
“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,” Sabre President and CEO Kurt Ekert said in a statement. “This divestiture positions Sabre to focus on our core airline IT and travel marketplace platforms. We’re confident that TPG’s investment approach and expertise will drive significant value to all of Hospitality Solutions’ customers.”
Sabre acquired SynXis—the core of its hospitality business—two decades ago. The company said it has continued to evolve the platform and invest in capabilities and solutions, including Retail Studio. Today, many of the world’s largest and most premium hotel brands rely on Hospitality Solutions as their central reservation platform, the company said.
TPG aims to leverage a ‘mission-critical software business’
“Hospitality Solutions’ platform is central to its customers’ ability to manage and deliver great experiences for guests,” TPG Partner Tim Millikin said in a statement. “We have a long history of partnering with mission-critical software businesses like Hospitality Solutions that—with the right combination of capital and operational focus—can achieve meaningful growth. The transaction exemplifies our thematic investment approach and distinct carveout expertise, and we look forward to working with the team to enhance and expand the Hospitality Solutions platform.”
TPG Partner Paul Hackwell said Hospitality Solutions’ tailored offering “is enabling hotels of all types to meet guests where they are and truly prioritize their needs.”
“The hospitality industry continues to evolve rapidly,” Hackwell added. “The transaction brings together our decades of investing experience across the travel and software sectors, and we look forward to working with the team to build the platform into a comprehensive technology provider for the hospitality industry.”
In addressing the deal, TPG cited its “deep experience” in executing corporate carveouts to support and grow innovative software businesses. Its investments have included Boomi, Elite, Everfox, McAfee, and Wind River.
Paying down debt at Sabre
Sabre said its expected cash proceeds, net of taxes and fees, of around $960 million will be used “primarily to pay down debt, enabling Sabre to improve its balance sheet, optimize focus on its core business, and continue its focus on long-term sustainable growth.”
The acquisition has been approved by Sabre Corporation’s board and is expected to close by the end of the third quarter 2025, subject to customary closing conditions and regulatory approvals, the company noted.
Evercore is acting as the financial advisor to Sabre, with Haynes Boone, LLP isserving as legal counsel to the company. William Blair is acting as the financial advisor to TPG, with Davis Polk & Wardwell LLP serving as legal counsel to TPG.
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