Travelocity parent Sabre files for $100M IPO

Sabre Holdings, owner of Travelocity (the #2 U.S. online travel agency) and a provider of numerous software/services offerings for the travel industry, has filed for a $100M IPO. The company is being taken public by P-E firms TPG and Silver Lake. (S-1)

No symbol has yet been proposed. Morgan Stanley, Goldman, BofA/Merrill, and Deutsche are underwriting.

For the nine months ending Sep. 30, Sabre had revenue of $2.35B (+1% Y/Y), and a net loss of $154.5M. Thanks to its P-E owners, the company ended the period $3.65B in long-term debt, and just $491.6M in cash/equivalents.

Sabre offers a massive B2B travel marketplace/distribution system (GDS), and claims a 37% 2012 share of GDS-processed air bookings; ~50% shares are claimed for North America, Asia-Pac, and Latin America. The company also provides a central reservation system for the hospitality industry that's estimated to have a 26% share of hotel rooms distributed through Sabre's CDS.

In August, Sabre struck a long-term deal with Expedia under which Expedia is responsible for Travelocity's travel inventory and technology platforms.

Comments (3)
  • idkmybffjill
    , contributor
    Comments (1914) | Send Message
    Silver Lake took them private a couple years ago. Have any improvements occurred since then besides increased debt load?
    21 Jan 2014, 04:07 PM Reply Like
  • Equitable Research
    , contributor
    Comments (2250) | Send Message
    What a terrible balance sheet. IPO market getting very toppy here if they can pull this one off...
    21 Jan 2014, 10:19 PM Reply Like
  • blades58
    , contributor
    Comments (11) | Send Message
    Financial engineering. Nothing changes except the VC bank Accounts.
    5 Apr 2014, 10:28 AM Reply Like
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