Travel technology and distribution company Sabre Corporation has agreed to sell its hospitality solutions business to asset management company TPG for $1.1 billion.

The sale sees TPG acquire the hospitality business unit, which becomes a standalone business through TPG Capital, its United States and European private equity vehicle.

Sabre said it plans to reduce debt with the $960 million proceeds of the deal, strengthening its balance sheet and enabling it to focus on its core airline technology and distribution business, which continues to include hotels.

The news comes on top of Sabre’s recent sale of its corporate self-booking tool, GetThere, to Serko for $12 million.

“The $1.1 billion sale of this business is a testament to the transformation that the Hospitality Solutions team has driven over the past few years,” said Kurt Ekert, president and CEO of Sabre Corporation. 

“This divestiture positions Sabre to focus on our core airline IT and travel marketplace platforms. We are confident that TPG’s investment approach and expertise will drive significant value to all of Hospitality Solutions’ customers.”

The hospitality solutions business grew out of Sabre’s purchase of SynXis in 2005. Sabre announced it was developing a central reservation system for Hyatt in mid-2023. 

The hospitality unit has also been building out its platform to include more retail capabilities. It also acquired Nuvola in 2022 and Techsembly in mid-2023 to as part of the retailing strategy.

“Hospitality Solutions’ platform is central to its customers’ ability to manage and deliver great experiences for guests,” said Tim Millikin, partner at TPG. 

“We have a long history of partnering with mission-critical software businesses like Hospitality Solutions that—with the right combination of capital and operational focus—can achieve meaningful growth. The transaction exemplifies our thematic investment approach and distinct carveout expertise, and we look forward to working with the team to enhance and expand the Hospitality Solutions platform.” 

The transaction is expected to close by October this year.