American Express Global Business Travel (Amex GBT) has announced that it will acquire rival CWT for $570 million in cash and stock, making it one of the largest mergers of travel management companies in recent history. The deal is expected to close in the second half of 2024, pending approval from shareholders and regulatory authorities.
Both companies’ boards of directors have already approved the merger. Amex GBT CEO Paul Abbott stated that bringing CWT onto their software and services model would provide more choices for customers, more opportunities for employees, and more value for shareholders. He expects CWT to generate about $850 million in revenue and $70 to $80 million in adjusted earnings before interest, taxes, depreciation, and amortization in 2024.
CWT CEO Patrick Andersen expressed confidence in the value creation of the combined company, stating that joining forces with Amex GBT would help accelerate their vision of a tech-enabled future for business travel. Andersen emphasized the importance of combining people and technology to deliver an exceptional customer experience. This report will be updated as more information becomes available.
