Sabre to Acquire GetThere; Creates Leading E-Commerce Travel Platform for Corporations and Suppliers
FORT WORTH, Texas and MENLO PARK, Calif., Aug. 28 /Sabre Holdings Corporation TSG, the world leader in travel marketing and distribution, today announced that it has entered into an agreement to acquire GetThere, Inc. GTHR in an all cash tender offer for all outstanding shares of GetThere common stock at $17.75 per share, or $757 million. The acquisition will bring together the top two players in the online business-to- business corporate...
GetThere would be combined with the Sabre Business Travel Solutions (BTS) unit to create the industry's leading online travel platform for corporations and suppliers, with leading-edge technologies, innovative services and content, and an unparalleled roster of blue-chip customers. Upon closing of the transaction, the new Sabre company will operate under the GetThere name and will be based in Menlo Park, California. Gadi Maier, current GetThere chairman, president and CEO, will be president of the combined organization, and will report to Hannigan.
"This acquisition will establish Sabre as the category leader in the fast growing online corporate and supplier Web site space," said William J. Hannigan, chairman, president and chief executive officer of Sabre. "Together, we will bring expanded benefits to customers, suppliers and shareholders. Our combined technology and expertise will enable us to offer the broadest range of services and content, and to create enhanced revenue- generating opportunities in a rapidly changing marketplace."
"We are pleased that Gadi Maier has agreed to lead this new Sabre company and look forward to working with him as a key member of our senior management team," said Hannigan.
"By combining the competencies and resources of both GetThere and Sabre, we can deliver unparalleled services globally," said Gadi Maier. "Together, we will accelerate the proliferation of online travel technology and continue to revolutionize the travel industry."
The acquisition will bring together an extensive list of customers, representing an estimated $28 billion in travel and entertainment spending. Corporate customers, which include Boeing, Chevron, Cisco Systems, Citicorp, Dell, General Electric, Lucent, Nike and Nortel, have already reduced their travel expenses by up to 30 percent through the implementation of tools from Sabre and GetThere. In addition, travel suppliers and retailers leverage the technology capabilities of GetThere and Sabre to deliver best in class consumer Web sites. These customers include major airlines such as United Airlines, America West, US Airways and Swissair, and retailers such as American Express, Cheap Tickets and
Under the terms of the agreement, which was unanimously approved by GetThere's board of directors, the transaction will include a tender offer, which is expected to commence during the week of September 4, 2000. The transaction is expected to close in the fourth quarter of 2000, subject to regulatory clearance and customary closing conditions.
The combined businesses will have estimated 2000 revenues of approximately $50 million and are anticipated to help fuel Sabre's growth over the long term. The financial impact of this acquisition, coupled with the cost-savings of approximately $100 million generated from the Sabre's worldwide cost- cutting initiative described below, will have a neutral impact to earnings in 2001.
Sabre has made a number of recent strategic investments in support of its strategy to be the premier electronic travel marketing and distribution company. Earlier this month the company acquired Gradient Solutions Limited, a Dublin, Ireland based technology company that provides e-commerce solutions to the global travel marketplace. In June, the company announced the acquisition of a 51 percent ownership in Dillon Communications Systems, the fastest-growing supplier of electronic travel distribution in Germany. Earlier this year the company merged Preview Travel and
In a separate announcement today, Sabre also announced a worldwide cost- cutting initiative designed to position the company for increased growth and profitability. The company-wide program supports an effort launched several months ago to improve efficiencies and flatten the organization, thereby increasing speed and agility. The plan includes the elimination of approximately 1200 jobs over the next several months, through a combination of attrition and layoffs, and is expected to bring annual savings of $100 million beginning in 2001.
About Sabre
Sabre is the global leader in applying information technology to meet the needs of the travel and transportation industries with advanced and innovative technology skills to deliver progressive solutions. Headquartered in Dallas/Fort Worth, Texas, the company has more than 10,000 employees worldwide who span 45 countries. Sabre reported 1999 revenues of $2.4 billion, up 5.6 percent from 1998. Net earnings excluding special items were $264 million, up 15.2 percent from the prior year. More information on Sabre is available on the World Wide Web at
About GetThere
GetThere operates one of the world's largest Internet marketplaces focused on business-to-business travel services. GetThere's systems are used to provide online travel procurement to employees at leading corporations such as Boeing, Chevron, Cisco, Cox Communications, Lucent, MetLife, Nike and Xerox. GetThere also powers online travel sites for leading airlines, including Alitalia, All Nippon Airways, America West, British Airways, Northwest Airlines, TWA and United Airlines. GetThere can be found on the Web at
This news release is for informational purposes only. It does not constitute an offer to purchase shares of GetThere or a solicitation/recommendation statement under the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). At the time Sabre commences a tender offer, Sabre will file with the SEC a tender offer statement and GetThere will file with the SEC a solicitation/recommendation statement in response to that tender offer. Those documents will contain important information and security holders of GetThere are advised to carefully read those documents (when they become available) before making any decision with respect to the tender offer.
The offer to purchase and other offer documents included in the tender offer statement, as well as the solicitation/recommendation statement, will be made available to all shareholders of GetThere at no expense to them. Security holders may obtain a free copy of the solicitation/recommendation statement (when available) and other documents filed by GetThere or Sabre with the SEC at the SEC's web site at
Statements in this news release that are not purely historical facts, including statements about anticipated or expected future revenue and earnings growth, are forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements in this release are based upon information available to Sabre and GetThere on the date of this release. Any forward looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward looking statements, including risks related to: maintaining existing GetThere customer and employee relationships; competition and technological innovation by competitors; risks related to technology, including the integration of the Sabre and GetThere technology; seasonality of the travel industry and booking revenues; sensitivity to general economic conditions and events that affect airline travel; risks associated with international operations; and legal and regulatory issues. Further information regarding factors that could affect Sabre's financial and other results is included in Sabre's and GetThere's filings with the Securities and Exchange Commission. Sabre and GetThere undertake no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on forward- looking statements.