American Express Global Business Travel (Amex GBT) has announced its acquisition of major rival CWT in a deal worth $570 million, following approvals from both companies' boards. The acquisition marks a significant move in the global travel management sector, bringing together two industry giants to create a powerhouse in business travel solutions.
Paul Abbott, CEO of Amex GBT, highlighted the benefits of the deal, emphasizing that it will provide CWT's customers with increased choice and value while enabling greater investment in software and services. Abbott stated, "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."
The merger will see two of the world's largest travel management companies combine forces. CWT, with 4,000 customers and an expected total transaction value (TTV) of approximately $14 billion and revenue of $850 million in 2024, will join forces with Amex GBT, which is forecast to achieve a TTV of around $31 billion and revenue of $2.5 billion this year.
The acquisition will be funded by a combination of shares and cash and is expected to close in the second half of 2024, subject to regulatory approvals. Upon completion, CWT customers will gain access to Amex GBT's platforms, including Neo1, Neo, and Egencia, enhancing their travel management experience.
This move reflects a trend of consolidation within the global travel management sector, with Amex GBT leading the way through previous acquisitions of HRG in 2018 and Egencia from Expedia Group in 2021. With Amex GBT already ranked as the number one TMC in Europe and CWT holding the third position in European sales, the merger is poised to further strengthen their market dominance.
Following the acquisition, CWT shareholders will own approximately 13 percent of Amex GBT, which has been listed on the New York Stock Exchange since May 2022. Amex GBT anticipates annual synergies or cost cuts of around $155 million within the next three years, signaling substantial growth opportunities for the combined entity.
While it remains unclear whether the CWT brand will be retained post-acquisition, Martin Ferguson, Amex GBT's VP of public affairs, assured stakeholders that it's "business as usual" for now. Plans for the future will be developed during the integration process, ensuring a seamless transition for both companies and their clients.
The acquisition of CWT represents a significant milestone for Amex GBT, positioning the company for continued growth and innovation in the dynamic business travel landscape.
