Sabre Holdings, owner of Web site Travelocity, agreed to be sold to private equity firms Silver Lake Partners and Texas Pacific Group for $32.75 a share in cash, or about $4.45 billion.
The buyers valued the transaction at about $5 billion, including the assumption of approximately $550 million in debt. They said in a press release that the per share price represents a premium of 30% over the Sabre Holdings average closing share price during the 60 trading days ended Dec. 8.
The board of directors of Sabre Holdings approved the definitive merger agreement and recommended its approval by stockholders.
"After a thorough assessment, we concluded that this transaction represents a compelling outcome for our shareholders, customers and employees," said Sam Gilliland, Chairman and CEO of Sabre Holdings.
"We are excited about the ability to deliver substantial value today to our shareholders, and we look forward to a strong future, partnering with two preeminent investment firms that are closely aligned with our strategy and long-term objectives. This transaction is a clear ndorsement of our business model, our industry leadership and the hard work and dedication of our talented people around the world."
Greg Mondre, a Managing Director of Silver Lake Partners, said, "Sabre has a remarkable track record of pioneering and delivering best-in-class technology solutions for the global travel industry. We look forward to working with Sabre's talented management team as they continue to deploy technology as a source of competitive advantage and value-add for customers."