In what would be one of the largest mergers of travel
management companies in recent history. American Express
Global Business Travel on Monday morning announced it had agreed to acquire
rival CWT for $570
million in cash and stock.
Should the deal receive the approval of
shareholders and regulatory authorities, Amex GBT said it expects the transaction to close in the second half of 2024. Both companies’ boards of directors
have approved the deal,
according to Amex 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,” Amex GBT CEO Paul
Abbott said in a statement. Amex GBT said it expects CWT in 2024 to generate
about $850 million in revenue and $70 million to $80 million in adjusted earnings before interest, taxes, depreciation and amortization.
“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.”
This report will be updated.
