American Express Global Business Travel will acquire rival CWT in a deal worth US$570 million after the boards of both companies approved the transaction.
In corporate travel management, volume is key to profitability. Pending regulatory approval, this deal will merge two of the world’s largest travel management companies. Amex GBT is forecast to achieve total transaction sales of $31 billion this year and revenue of $2.5 billion, while CWT expects sales of $14 billion and revenus of $850 million in 2024.
PHOTO: Paul Abbott, American Express GBT (photo via American Express GBT)
“Bringing CWT onto the proven Amex GBT software and services model will create more choice for customers, more opportunities for people and more value for shareholders,” said CEO Paul Abbott.
The acquisition will be funded through a combination of shares and cash. It is expected to close in the second half of 2024 subject to approvals.
CWT was an evolution of Carlson Wagonlit. (Photo Credit: CWT)
CWT’s CEO Patrick Andersen stated: “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. We are highly confident in the value creation of the combined company."
AmexGBT has been growing by acquisition in recent years. It swallowed HRG in 2018 and bought Egencia from Expedia Group in 2021.
CWT went through a Chapter 11 bankruptcy process in 2021, and its current shareholders are “primarily” investment funds.
Amex GBT says it has Identified approximately $155 million of annual run-rate synergies within three years, with approximately 35% expected to be realized in 2025. A dedicated integration team will execute the synergy plan.
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