Private equity firm TPG has agreed to acquire Sabre Corporation’s Hospitality Solutions business for $1.1bn in cash, positioning the division for its next phase of growth as a standalone entity.

The transaction, expected to close by the end of Q3 2025, will be executed through TPG Capital, the firm’s US and European private equity platform. Hospitality Solutions provides software services to over 40% of the world’s leading hotel brands, including reservation and guest management systems critical to hotel operations. The platform will continue to operate independently, backed by TPG’s capital and operational expertise.

Sabre will use the net proceeds of approximately $960m, after taxes and fees, to pay down debt, strengthen its balance sheet, and sharpen its focus on its core airline IT and travel marketplace businesses. The deal forms part of a broader strategic initiative to optimise Sabre’s portfolio and drive long-term shareholder value.

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

TPG’s Tim Millikin added, “Hospitality Solutions is a mission-critical platform for its clients. With the right combination of capital and operational focus, we believe the business can unlock significant growth.”

The deal builds on TPG’s long history of corporate carveouts and strategic investments in technology and travel, having backed companies such as Boomi, McAfee, Everfox, and Wind River.

Following the transaction, Sabre and Hospitality Solutions will enter into a transition services agreement to support a smooth handover. The sale has been approved by Sabre’s Board of Directors and is not subject to financing conditions.

Source: PR Newswire