Sabre Stock Rockets After Divesting Hospitality Solutions Business To TPG In $1.1B Deal

Shares of travel technology provider Sabre Corporation (SABR) rocketed 15% by Monday afternoon after the company said that asset management firm TPG (TPG) has agreed to acquire its Hospitality Solutions business for $1.1 billion in cash.

TPG will invest in Hospitality Solutions through its U.S. and European private equity platform called TPG Capital, Sabre said.

The deal will establish Hospitality Solutions, which provides software and solutions to more than 40% of the world's hotel brands to record reservation and guest information, as a standalone business. Hospitality Solutions is distinct from Sabre's hotel B2B distribution business.

Sabre expects to use cash proceeds, net of taxes and fees, of approximately $960 million from the deal to pay the company’s debt, it said.

Sabre’s debt stood at $4.5 billion, net of cash, as of December-end. The company has taken steps to manage its debt, including debt refinancings in December 2024 and repayment of April 2025 debt maturities, it stated.

Sabre CEO Kurt Ekert said that the divestiture positions the company to focus on its core airline IT and travel marketplace platforms.

"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,” TPG partner Tim Millikin said.

TPG and Sabre also expect to enter into a transition services agreement, as part of which Sabre will provide certain services following the closing of the acquisition to assist in the transition of the Hospitality Solutions business.

The purchase transaction is expected to close by the end of the third quarter of 2025, the company said.

SABR stock is down by about 29% so far this year and by about 12% over the past 12 months.

TPG stock, meanwhile, is trading about 0.4% lower on Monday afternoon. The stock is down by about 27% year-to-date.

Also See: Palo Alto Networks To Acquire Protect AI To Boost Artificial Intelligence Security Capabilities

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