11:48 AM EDT, 04/28/2025 (MT Newswires) -- Sabre (SABR) agreed to sell its hospitality solutions business to alternative asset management firm TPG (TPG) for $1.1 billion in cash.

The transaction, which requires approval from regulators, is expected to complete by the end of the third quarter of this year, the companies said Monday in a joint statement. The hospitality solutions segment supports the central reservation platform of more than 40% of the world's leading hotel brands.

Sabre, which is a technology provider to the travel industry, expects net proceeds of roughly $960 million from the deal. That money will be used to pay down debt and "optimize focus on its core business," the company said.

Sabre's stock were advancing by about 18% in Monday trade, while TPG shares were down 0.3%.

"This divestiture positions Sabre to focus on our core airline IT and travel marketplace platforms," Chief Executive Kurt Ekert said. "We are confident that TPG's investment approach and expertise will drive significant value to all of Hospitality Solutions' customers."

Sabre's hospitality solutions revenue grew 7% year over year to $326.8 million in 2024.

As part of the deal with TPG, Sabre agreed to provide certain services to support the transition of the hospitality solutions business.

"The hospitality industry continues to evolve rapidly. Hospitality Solutions' tailored offering is enabling hotels of all types to meet guests where they are and truly prioritize their needs," TPG Partner Paul Hackwell said. "The transaction brings together our decades of investing experience across the travel and software sectors, and we look forward to working with the team to build the platform into a comprehensive technology provider for the hospitality industry."

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