Sabre Corp. has agreed to sell Sabre Hospitality Solutions, its hotel reservation technology unit, to private equity and investment firm TPG for $1.1 billion, the companies announced Monday.
TPG will operate Hospitality Solutions as a separate business. The sale does not include Sabre's B-to-B hotel distribution business, which it called a "strategic area of investment."
Sabre said it expected to net $960 million in cash from the sale, which it would use to "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," according to the company.
Sabre developed Hospitality Solutions following its acquisition in 2005 of reservation technology firm SynXis.
Sabre said it expected the sale, which is subject to regulatory approval, to close in the third quarter.