Sabre Contemplates $1 Billion Sale of SynXis Hospitality Software Unit

• Sabre is considering selling its hospitality software unit, SynXis, potentially worth over $1 billion, to reduce its debt.
• Potential acquirers could include private equity firms and rival software makers, and the company is currently working with investment bank Evercore to gauge interest.

As reported by Reuters, travel technology provider Sabre is reportedly exploring the sale of its hospitality software unit, SynXis. According to sources familiar with the matter, the potential deal, which could be worth over $1 billion, is seen as an effort to help the company reduce its significant debt.

The Southlake, Texas-based company is partnering with investment bank Evercore to gauge interest from potential buyers. The list of potential acquirers includes private equity firms and rival software makers. However, these discussions are confidential and a final deal is not guaranteed.

The SynXis business currently contributes about $300 million to Sabre’s annual revenue. News of the potential sale caused Sabre’s shares to jump 3.4% in trading after market hours on Thursday. The company, which currently has a market value of approximately $1.3 billion, reported a net debt of roughly $4.5 billion at the end of December.

Established in the 1960s, Sabre has evolved from a data processing system for the airline industry to a leading provider of software solutions for the global travel industry. Its customer portfolio includes top airlines, travel agencies, hotels, tour operators, car rental brands, and rail carriers.

The SynXis unit, in particular, provides software to more than 40% of all hotels worldwide, including high-profile clients such as Four Seasons, Mandarin Oriental, and Hyatt.

When approached by Reuters, both Sabre and Evercore declined to comment on the potential sale. As the discussions are ongoing, it remains uncertain whether a deal will be reached.