TPG completes $1.1 billion purchase of Sabre's hospitality division

TPG completes $1.1 billion purchase of Sabre's hospitality division

In a significant move, private equity firm TPG has completed a $1.1 billion acquisition of Sabre Hospitality Solutions, marking a new chapter for the company. The deal, announced in April, has now been finalized, with Teresa Mackintosh appointed as the new CEO to lead this next phase [1][4].

Under TPG's ownership, Hospitality Solutions, formerly Sabre Hospitality Solutions, is set to focus on driving global hotel technology innovation and accelerating digital transformation in the hospitality sector. The company, which provides SaaS-based integrated software supporting over 40% of the world's leading hotel brands, aims to empower hotels to deliver seamless and personalized guest experiences through advanced, purpose-built technological tools [1].

The acquisition is part of TPG's strategy to capitalize on the growing $12.6 billion global hotel technology market by leveraging Hospitality Solutions' scalable software platform and the firm's operational expertise. TPG is positioning Hospitality Solutions to lead the ongoing digital transformation in the industry through innovation, particularly by adopting AI-driven personalization [2][3].

To further enhance industry knowledge, Hospitality Solutions has welcomed a strategic minority investor, MCR—one of the largest U.S. hotel owner-operators. MCR's CEO, Tyler Morse, has joined the board as Vice Chairman, reinforcing the company's alignment with hotel operators [1].

Since its 2005 acquisition of SynXis, Hospitality Solutions has expanded its portfolio with additions in 2022 (Nuvola) and 2023 (Techsembly) [5]. The latest addition, Techsembly, is a hotel e-commerce provider. Kurt Ekert, President and CEO of Sabre, stated that the transaction is an important step in Sabre's ongoing transformation [6].

However, the proceeds from the sale will not be used to change Sabre's debt or financial strategy. Instead, they will help Sabre pay down debt, reduce net leverage, and refocus on sustainable growth [7]. The acquired unit will now operate as Hospitality Solutions, a standalone company under TPG Capital.

The appointment of Teresa Mackintosh as CEO reinforces TPG's investment focus on vertical SaaS platforms. Mackintosh, who previously served as CEO and executive chair of Trintech, brings a wealth of experience from her tenure at Wolters Kluwer and Thomson Reuters [8].

The acquisition of Sabre Hospitality Solutions adds to TPG's portfolio of high-growth software and technology businesses. With Mackintosh at the helm, Hospitality Solutions is poised to expand its leadership in hospitality technology by enabling hotels to operate more efficiently and deliver superior guest experiences in a tech-enabled era [1][4].

Sources: [1] https://www.hotelmanagement.net/news/tpg-acquires-sabre-hospitality-solutions-to-drive-global-hotel-technology-innovation [2] https://www.hoteliermiddleeast.com/news/tpg-acquires-sabre-hospitality-solutions-for-1-1bn [3] https://www.skift.com/2021/04/05/tpg-is-reportedly-nearing-a-1-1-billion-deal-to-acquire-sabre-hospitality-solutions/ [4] https://www.reuters.com/business/media-telecom/private-equity-firm-tpg-to-buy-sabre-hospitality-solutions-2021-04-05/ [5] https://www.hotelbusiness.com/news/sabre-hospitality-solutions-acquires-guest-engagement-platform-nuvola/ [6] https://www.businesswire.com/news/home/20230315005402/en/Sabre-Hospitality-Solutions-Announces-Acquisition-of-Techsembly [7] https://www.reuters.com/business/media-telecom/sabre-hospitality-solutions-to-use-960-million-proceeds-from-tpg-deal-to-streamline-operations-2021-07-06/ [8] https://www.businesswire.com/news/home/20210706005442/en/TPG-Capital-Announces-Appointment-of-Teresa-Mackintosh-as-CEO-of-Hospitality-Solutions

1. The private equity firm, TPG, has completed a $1.1 billion deal to acquire Sabre Hospitality Solutions, with plans to drive global hotel technology innovation and accelerate digital transformation in the sector.
2. Under TPG's ownership, Hospitality Solutions aims to empower hotels to deliver seamless and personalized guest experiences using advanced, purpose-built technological tools.
3. The acquisition is part of TPG's strategy to capitalize on the growing $12.6 billion global hotel technology market and position Hospitality Solutions to lead the ongoing digital transformation in the industry.
4. To further enhance industry knowledge, a strategic minority investor, MCR, has joined Hospitality Solutions' portfolio, with its CEO, Tyler Morse, adding value as Vice Chairman.
5. Since 2005, Hospitality Solutions has expanded its portfolio with additions, including a hotel e-commerce provider, Techsembly, in 2023.
6. Despite the proceeds from the sale not being used to change Sabre's debt or financial strategy, they will be allocated to pay down debt, reduce net leverage, and refocus on sustainable growth.

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