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Sabre has entered into a definitive agreement to acquire the Trust Group of Companies, a central reservations, revenue management and hotel marketing provider with a significant presence in EMEA and Asia Pacific. The acquisition will include Trust International, InnLink and Nexus.
“Acquiring the Trust Group is consistent with our stated goal of building on Sabre Hospitality Solutions’ global leadership position, and this combination will enable us to grow faster,” says Tom Klein, president and CEO of Sabre. “The Trust Group is one of the industry’s most respected brands, and our customers will benefit from our combined expertise and focus on innovation.”
The Trust Group’s global customer base, broad capabilities and unique solutions will allow Sabre to provide a comprehensive SaaS platform, while extending Sabre’s position as the world’s largest central reservations system provider to hotels. Together with the Trust Group, Sabre Hospitality Solutions will serve significantly more hotels than any other central reservations technology provider.
“The technology needs of the hospitality industry are evolving at a rapid pace. Hoteliers want a global technology provider that anticipates their needs and delivers broad, integrated solutions, including data and analytics, retailing and guest engagement,” said Alex Alt, president of Sabre Hospitality Solutions. “By bringing together Sabre and the Trust Group, we will immediately expand our capabilities and increase the pace of innovation we deliver to the industry. We look forward to welcoming the talented Trust team to Sabre and our journey to deliver unprecedented value to our customers.”
Central to its growth strategy, Sabre has been working with hoteliers to redefine technology solutions and service models needed to accelerate growth and enhance guest experiences that differentiate brands in all segments of the hospitality industry.
“The Trust Group and Sabre share a passion for providing our customers with the most innovative and efficient hospitality solutions, paired with world-class customer service,” says Richard Wiegmann, CEO of the Trust Group of Companies. “This combination will help accelerate our customers’ growth through a broader set of hospitality solutions and services that will better serve the evolving needs of hotels and their guests.”
At closing, Sabre will purchase the Trust Group from Battery Ventures, a global investment firm, for approximately $154 million, using proceeds from recently issued notes and cash on hand. The acquisition is expected to contribute approximately $40 million of incremental revenue to Sabre in 2016 and to be accretive to Sabre’s Adjusted EBITDA and neutral to its Adjusted EPS, assuming a first quarter 2016 closing date.
The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close in early 2016. Until closing, Sabre and the Trust Group will continue to operate as separate companies.