SOUTHLAKE, Texas and AUCKLAND, New Zealand - In a strategic move to expand its presence in the corporate travel sector, Serko Limited has agreed to acquire GetThere from Sabre (NASDAQ:SABR) Corporation. The acquisition is part of a broader partnership that includes collaborative development and investment efforts aimed at enhancing product capabilities and market reach.
The deal, subject to customary closing conditions, will see Serko take ownership of GetThere, a business travel management solution historically serving large and complex managed travel corporations. This acquisition is expected to complement Serko's existing operations in North America and support its global expansion efforts. The financial terms of the transaction were not disclosed, but Sabre anticipates that the sale will not significantly impact its financial performance in 2024.
Serko and Sabre's partnership will focus on minimizing friction for travelers and increasing efficiency for travel management companies (TMCs) and corporations. This includes streamlining processes and leveraging technology to introduce new products and features. Additionally, Serko will benefit from the Sabre and Google (NASDAQ:GOOGL) co-innovation framework to further develop corporate travel solutions.
Darrin Grafton, CEO and Co-Founder of Serko, emphasized the importance of the partnership with Sabre in advancing Serko's mission to provide a comprehensive solution for the managed travel segment. Garry Wiseman, Sabre's Chief Product and Technology Officer, and Roshan Mendis, Chief Commercial Officer, echoed the sentiment, highlighting the collaboration's potential to equip TMCs and corporations with the tools needed to meet their objectives and adapt to the evolving needs of business travelers.
The acquisition includes the GetThere brand, intellectual property, team expertise, and a global customer base. Serko will continue to operate GetThere under its brand name, and transitional arrangements will be made to ensure continuity for customers.
This announcement follows a series of enhancements to the GetThere platform by Sabre, including new air shopping experiences and New Distribution Capability (NDC) capabilities, aimed at improving business outcomes for suppliers and corporate customers.
The information provided in this article is based on a press release statement.
In other recent news, Sabre Corporation has been making significant strides in its operations and partnerships. The company recently reported strong Q2 2024 financial results, surpassing its revenue and adjusted EBITDA guidance, and generated positive free cash flow for the first time in five years. Consequently, Sabre has revised its full-year 2024 revenue and adjusted EBITDA outlook upwards.
On the partnership front, Sabre has entered into a distribution agreement with Premier Inn, adding over 900 of their hotels to Sabre's lodging platform. The company also teamed up with World Travel, Inc., to provide a broader selection of travel options, and with LOTTE HOTELS & RESORTS to enhance the hotel group's reservation and distribution systems. In a move towards sustainability, Sabre partnered with Google to use the Travel Impact Model for analyzing historical business travel emissions.
In terms of executive changes, Sabre appointed Rochelle Boas as the new Executive Vice President and Chief Legal Officer, following Ann Bruder's departure. The board size was reduced from ten to nine directors due to Gregg Saretsky's resignation. Eric L. Kelly, with his extensive tech industry experience, was appointed to Sabre's Board of Directors. These are the recent developments in Sabre Corporation.
InvestingPro Insights
As Sabre Corporation (SABR) moves forward with the sale of GetThere to Serko Limited, investors may be interested in some key financial metrics and insights from InvestingPro.
Sabre's market capitalization stands at $1.55 billion, reflecting its significant presence in the travel technology sector. The company has shown revenue growth of 7.31% over the last twelve months, with total revenue reaching $2.98 billion. This growth trend aligns with Sabre's strategic decisions, such as the GetThere divestiture, which aims to focus on core operations and partnerships.
One of the standout InvestingPro Tips for Sabre is its impressive gross profit margins. Indeed, the data shows a robust gross profit margin of 59.47% for the last twelve months, indicating strong pricing power and efficient cost management in its core operations. This financial strength could provide Sabre with the flexibility to pursue strategic initiatives like the partnership with Serko.
Another relevant InvestingPro Tip notes that Sabre has seen a significant return over the last week, with data showing a 11.14% price total return. This recent uptick could reflect positive market sentiment towards the company's strategic moves, including the GetThere sale and broader partnership with Serko.
It's worth noting that despite these positive indicators, analysts do not anticipate the company will be profitable this year, according to another InvestingPro Tip. This insight underscores the importance of Sabre's efforts to streamline operations and focus on high-potential partnerships to drive future profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 8 more InvestingPro Tips available for Sabre Corporation, providing a deeper understanding of the company's financial health and market position.
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