American Express Global Business Travel (Amex GBT) today announced that it has entered into a definitive agreement to acquire CWT, a global provider of business travel and meetings solutions. The transaction values CWT at approximately $570 million (526 million euros), excluding debt, subject to certain conditions and purchase price adjustments.
Paul Abbott, CEO of Amex GBT, said: “By integrating CWT into our proven software and services model, we will deliver more choice, opportunity and value to customers and shareholders.”
CEO of CWT, Patrick Andersen, said: “Partnering with Amex GBT accelerates our vision of a technology-driven future for business travel, where human expertise and technology come together to deliver an excellent customer experience. We are confident that the combined company will create value.”
The financing will be partly in cash and partly in shares. Closing of the transaction is expected in the second half of 2024, subject to customary closing conditions and regulatory approvals.
CWT serves 4,000 customers and is expected to generate approximately $850 million in revenues and $70 million to $80 million in Adjusted EBITDA by 2024.
Following the acquisition, CWT customers will have access to Amex GBT’s travel and expense software and services, including Neo1, Neo and Egencia, in addition to Select for integration with leading technology partners. The broadest range of professional services, including meetings and events, consulting and sustainability solutions, will be available through Amex GBT’s marketplace, which offers the most comprehensive and competitive content in the industry.
The Global Business Travel Association predicted last year that business travel spending would recover to its pre-pandemic total of $1.4 trillion by 2024 and grow to nearly $1.8 trillion by 2027.
