American Express Global Business Travel (Amex GBT) announced a major acquisition in the travel management industry on Monday. The company has agreed to purchase competitor CWT for $570 million in a deal that combines cash and stock.
This transaction, if approved by regulators and shareholders, is expected to reach completion by the second half of 2024. Both Amex GBT and CWT’s boards of directors have already signed off on the agreement.
According to Amex GBT CEO Paul Abbott, the merger will “create more choice for customers, more opportunities for people and more value for shareholders” by integrating CWT into Amex GBT’s established software and service offerings.
Amex GBT anticipates CWT to generate approximately $850 million in revenue in 2024, alongside $70 million to $80 million in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA).
CWT CEO Patrick Andersen expressed optimism about the combined company’s future in a statement, highlighting the deal as an opportunity to “accelerate our vision of a tech-enabled future for business travel.” Andersen said he is “highly confident in the value creation” the merger will bring