Sabre Holdings Corporation has sold its airline outsourcing operation to the giant EDS Corporation for $670 million. Sabre will now focus on its more profitable, faster-growing lines of business, travel marketing, distribution and software.
The deal makes EDS the world's largest computer services provider to the airline industry. According to EDS, it now holds a 10% share of the airline market, twice the size of IBM's. Sabre's largest airline outsourcing clients were American and US Airways; EDS' included Continental.
Wall Street analysts called the transaction a turning point for Sabre, since it will allow the company to pay down debt, save money outsourcing its own IT operations, and allow it to focus on its core businesses.
Source: Airline Business
