Private Equity 12 Dec 2006 04:13 pm
Another company goes private, another online travel company to be exact. Texas Pacific Group (TGP) and Silver Lake Partners will be roaming with the gnome by buying Sabre Holdings, operator of Travelocity for $4.45 billion. TGP’s Karl Peterson let the buzzwords fly in his statement [PDF] about the deal:
We are excited by the opportunity to invest in Sabre given its leadership position in travel technology and distribution and the strength of Travelocity and its other leading online brands. Sabre is well positioned to continue innovating and we look forward to helping management profitably build upon this strong franchise.
In human-speak he means a lot of people know about Travelocity (and presumably the gnome), when people go online to buy airline tickets or hotel rooms one of the places they go is Travelocity, and he thinks they can make a boatload of money.
Marshall Lebovits asked, “Will the torrid pace of the mergers and acquisition market continue?” His answer comes from a Green Manning & Bunch note: “[W]e believe that the sheer velocity driven by idle capital available from lenders and the private equity community will cause today’s competitive landscape to continue for the near term.” Of course they’re investment bankers. What else are they suppose to say?