Tuesday, December 12, 2006

Private Equity firms to acquire Sabre Holdings Corp.

Who: Private equity firms Texas Pacific and Sliver Lake

Whom: Sabre Holdings Corp - a travel booking service

Deal: $4.5 billion in cash, plus the assumption of $550 million in debt

Cause and Effect:
  • Sabre, with a market cap of $4 billion, is enticing
  • Travelocity, Priceline.com and Orbitz are starting to show healthy growth again, although airlines have been decreasing the amount of inventory available to online ticket agencies
  • Orbitz, is now owned by PE firm, Blackstone Group - so there's some traffic heading in this direction
  • The overall PE market has been growing tremendously with LBOs. Lesser and lesser firms want to be taken public too, given all the regulations they need to go through for SOX compliance. So, PE and LBOs seem to be the new hot market for raising capital!
  • It has been announced that the same managment will be currently retained



Anonymous Anonymous said...

Sabre recruits here on campus also I think, at UT

4:12 PM  

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