The Amex GBT-CWT deal will see two of the world’s largest travel management companies come together. Photo Credit: Adobe Stock/Rawpixel.com
American Express GBT announced Monday it has entered into a
definitive agreement to acquire global business travel and meetings
solutions provider CWT in a deal some investors believe could foreshadow
more mergers and acquisitions in the sector.
The acquisition, valued at approximately US$570 million and still
subject to purchase price adjustments and other qualifiers, is expected
to close in the second half of the year and is subject to regulatory
approvals and other closing conditions.
“This transaction is a unique opportunity to significantly grow our
business,” Amex GBT CEO Paul Abbott said in a call with investors early
Monday. “We will welcome 4,000 new customers to the proven Amex GBT
software and services model, create more choice for customers and more
opportunities for our people.”
The transaction will be funded by a combination of stock and cash,
Abbott said. CWT is expected to generate approximately US$850 million of
revenues and between US$70 million and US$80 million of adjusted EBITDA
in 2024.
After the acquisition closes, CWT customers would have access to Amex
GBT’s proprietary software and services for travel and expense.
“Joining forces with Amex GBT helps accelerate our vision of a
tech-enabled future for business travel, where people and technology
combine to deliver an exceptional customer experience,” CWT CEO Patrick
Andersen said in a statement. “We are highly confident in the value
creation of the combined company.”
Amex GBT’s Paul Abbott and CWT’s Patrick Andersen.During his call with investors, Abbott spoke of the value CWT brings to AmexGBT.
“CWT’s vision of a tech-enabled future for business travel is aligned
with our software and services model,” Abbott said, praising CWT’s
digital products and its “immense potential” in using generative
artificial intelligence across its products and services.
“Through the integration of CWT, we will grow our footprint in
high-value industry verticals, expand our professional services business
and bring more customers onto our software solutions to further
differentiate our business and add significant value.”
Just last month, Amex GBT announced it had created a programme to
focus on AI projects and boost innovation and efficiency for the
corporate travel management community.
The New York City-based multinational corporate travel management
company became a public company in December 2021 with an expected market
capitalization of $5.3 billion.
Source: PhocusWire