Sabre explores $1 billion-plus sale of hospitality software unit, sources say
Sabre is exploring a sale of its hospitality software unit SynXis, in a deal that could be worth more than $1 billion and help the travel technology provider reduce its debt, according to people familiar with the matter.
The Southlake, Texas-based firm is working with investment bank Evercore to gauge interest from potential acquirers, which include private equity firms and rival software makers, the sources said, requesting anonymity as the discussions are confidential.
The SynXis business currently generates about $300 million in annual revenue, the sources said. The deliberations are ongoing and a deal is not guaranteed, the sources added.
Shares of Sabre, which has a market value of about $1.3 billion, jumped 3.4% in trading after market hours on the news on Thursday.
The company also had debt net of cash of about $4.5 billion as of the end of December.
Sabre did not respond to Reuters' request for comment. Evercore declined to comment.
Sabre's SynXis unit is a provider of software to more than 40% of all hotels globally, including Four Seasons, Mandarin Oriental and Hyatt.