American Express Global Business Travel (Amex GBT) has entered into a definitive agreement to acquire industry competitor CWT at approximately US$570 million on a cash-free, debt-free basis, subject to certain assumptions and purchase price adjustments.
The transaction will be funded by a combination of stock and cash and is expected to close in 2H2024, subject to the satisfaction of customary closing conditions, including the receipt of certain regulatory approvals.
CWT serves 4,000 customers and is expected to generate approximately US$850 million in revenue and US$70 million to US$80 million of Adjusted EBITDA in 2024.
Paul Abbott, CEO, Amex GBT, said in a press statement: “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.”
After the acquisition closes, CWT customers would have access to Amex GBT’s proprietary software and services for travel and expense, including Neo1, Neo and Egencia, in addition to Select, which enables customers to integrate with leading technology partners. Customers would have access to the broadest portfolio of professional services, including meetings and events, consulting and sustainability solutions, and Amex GBT’s marketplace would provide access to the most comprehensive and competitive content in the industry.
CWT CEO, Patrick Andersen, said: “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. We are highly confident in the value creation of the combined company.”
Amex GBT is operated by Global Business Travel Group, Inc.
