In what would be one of the largest mergers of travel management companies in recent history, American Express Global Business Travel on Monday 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.
Both companies are mega-agencies that rank at the top of Travel Weekly's annual Power List. In the most recent list, Amex GBT was No. 3, with $23 billion in annual sales in 2022. CWT was No. 5, with $13 billion.
"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 initially appeared in Business Travel News.