Sabre Reaches Buyout Deal
Updated from 8:51 a.m. EST
Sabre Holdings
(TSG)
, the owner of the trip-booking Web site Travelocity, confirmed that it will be acquired by two private equity firms for roughly $4.45 billion.
Silver Lake Partners and Texas Pacific Group will pay $32.75 a share for Sabre, representing a 30% premium over the stock's average closing price during the 60 trading days ended Dec. 8.
The company's shares closed Monday at $30.43, up 7.4% from Friday, following media reports that a deal was imminent.
"After a thorough assessment, we concluded that this transaction represents a compelling outcome for our shareholders, customers and employees," said Sabre Chairman and CEO Sam Gilliland in a statement.
Including the assumption of $550 million in debt, the deal is valued at $5 billion, Sabre said. The deal is expected to close by early in the second quarter of 2007.
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Shares of Sabre recently climbed $1.32, or 4.3%, to $31.75.
Other travel Web site operators were up modestly.
Travelzoo
(TZOO)
was adding 28 cents, or 0.9%, to $32.63, and
Priceline
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advanced 28 cents, or 0.7%, to $41.55.
