In a move that is seen as a big bet on, and boost for business travel, global travel software and services company American Express Global Business Travel (Amex GBT) has announced it has entered into a definitive agreement to acquire CWT, a global business travel and solutions provider.
The transaction values CWT at approximately US$570m, on a cash-free, debt-free basis, subject to certain assumptions and purchase price adjustments, a statement from Amex GBT, 25 March, has said. Should the deal go through, it would be one of the largest mergers of travel management companies in recent history.
The transaction will be funded by a combination of stock and cash and is expected to close in the second half of 2024, subject to the satisfaction of customary closing conditions, including the receipt of certain regulatory approvals.
Amex GBT customers include Google, Aon and Bank of America.
CWT serves 4,000 customers and is expected to generate approximately $850m of revenues and $70m–$80m of Adjusted EBITDA in 2024.
Paul Abbott (pictured), Amex GBT’s CEO, said: “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.”
After the acquisition closes, CWT customers would have access to Amex GBT’s proprietary software and services for travel and expense, including Neo1, Neo and Egencia, in addition to Select, which enables customers to integrate with leading technology partners. Customers would have access to the broadest portfolio of professional services, including meetings and events, consulting and sustainability solutions and Amex GBT’s marketplace would provide access to comprehensive content in the industry.
CWT CEO Patrick Andersen said: “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.”
The Global Business Travel Association last year forecast that corporate travel spending would recover to its pre-pandemic total of $1.4tn in 2024 and grow to nearly $1.8tn by 2027 and Paul Abbott told the FT he believed the corporate travel market had a “massive runway for growth”.
