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.
The Lufthansa Group’s Green Fares has been well received since it was launched a year ago – with more than one million passengers opting for the new fare – and demand continues to rise steadily in all booking classes, underlining the success of this sustainable option.
Available with Lufthansa, Austrian Airlines, Brussels Airlines, SWISS, Edelweiss, Discover Airlines and Air Dolomiti on more than 730,000 flights per year within Europe and to Morocco, Algeria and Tunisia, the Lufthansa Group has also been testing Green Fares on selected longhaul routes since November 2023.
In the first year, an average of three per cent of passengers have used the offer, making an important contribution to more sustainable travel. In Business Class, Green Fares tickets are already selected for eleven per cent of bookings via the Lufthansa Group portals.
Green Fares are particularly popular on routes such as Hamburg-Munich, Zurich-London and Frankfurt-Berlin. In total, travellers have offset more than 77,000 tonnes of CO2 since the launch of Green Fares by offsetting their flight-related CO2 emissions.
Green Fares includes the full offsetting of individual, flight-related CO2 emissions by sustainable aviation fuel (SAF) as well as a contribution to high-quality climate protection projects. With SAF, a reduction of 20 per cent of CO2 emissions is achieved, while the remaining 80 per cent is compensated by climate protection projects. The Lufthansa Group ensures that the amount of SAF required for offsetting is fed into the airport infrastructure within six months of purchase.
The Lufthansa Group’s CO2 compensation portfolio currently comprises 15 projects, including two technology-based projects.
Currently, around four per cent of Lufthansa Group passengers use one of the various offers for more sustainable flying. Passengers can either select a special fare such as the Green Fares, or individually tailored offers with a higher proportion of SAF during the booking process. They can also offset flight-related CO2 emissions during or after the flight.
In addition to private customers, more corporate customers are also using one of the Lufthansa Group’s offers for more sustainable flying – in 2023, more than 1,500 companies worldwide invested in SAF with the Lufthansa Group.
The Lufthansa Group has set itself ambitious climate protection goals and aims to achieve a neutral CO2 balance by 2050, halving its net CO2 emissions by 2030. As the first airline group in Europe with a science-based CO2 reduction target in line with the goals of the 2015 Paris Climate Agreement, the group is focusing on accelerated fleet modernisation, the continuous optimisation of flight operations, the use of SAF and offers for its private travellers and corporate customers to make air travel more sustainable.