American Express Global Business Travel (GBT) has announced it will acquire the British travel management and technology provider Hogg Robinson Group (HRG) plc in a £393m all-cash deal. Hogg Robinson said AmEx GBT would pay up to 120 pence per share, with the acquisition expected to complete in the second quarter of 2018.
Separately, Hogg Robinson said it had signed a £141m deal with Visa to sell its payments software subsidiary Fraedom.
Doug Anderson, chief executive officer, American Express GBT, said: “The complementary geographical footprints of each company will improve the global scale and reach of our business, enabling us to achieve efficiencies across a best-in-class platform and accelerate growth.
“The technology roadmaps of each business provide a powerful platform from which to drive future innovation. We will deliver a superior client and traveller experience through fully-integrated travel management solutions, including booking and expense management products.”
David Radcliffe, chief executive officer, HRG, said: “This transaction represents a good deal for shareholders and stakeholders. I am particularly excited and heartened by American Express GBT’s reassurance that it will be utilising the best talent and technology from within both organisations to create a truly world-class, leading-edge organisation, which will bring benefits to our clients, colleagues and supplier partners alike.”
Greg O’Hara, chairman of the board, American Express GBT, said: “The board of directors of GBT strongly endorses the acquisition of Hogg Robinson. Significant customer, operational and financial benefits are expected. This will enable the Combined Group to focus on additional value creation for customers and the marketplace, while generating new efficiency and growth opportunities for the business. I am excited at the prospect of creating a truly world class travel management company using the best available talent from both Hogg Robinson and GBT. Customers and travellers will benefit from the Combined Group’s complementary geographical footprint and technology offering. This combination will unlock meaningful value for all stakeholders.”
The acquisition is conditioned on receipt of antitrust and other regulatory approvals.