New investors for American Express Global Business Travel

American Express Global Business Travel (GBT) announces the signing of an agreement for a share recapitalization of its joint venture ownership structure to maintain GBT’s focus on its long-term growth strategy.

Since the joint venture was established in 2014, it has established its position as the world’s largest travel management company. GBT has over 18,000 employees in more than 140 countries and manages more than $35 billion in business travel annually.

American Express (NYSE: AXP) retains its 50% ownership interest, with the Certares-led investment group holding the other 50%. These already included Qatar Investment Authority, some funds managed by BlackRock and Teacher Retirement System of Texas. Now The Carlyle Group’s (NASDAQ: CG) longer-term private equity platform, Carlyle Global Partners, and GIC, an institutional investor are also joining this investment group, as well as the University of California Office of the Chief Investment Officer of the Regents and Kaiser Permanente. Greg O’Hara, founder and Senior Managing Director of Certares, will stay on as Executive Chairman of the GBT Board of Directors.

O’Hara said, “This investment validates the success of the joint venture and reinforces our long-term growth strategy. We are pleased to continue working with American Express and nearly all of the original investors, and to welcome Carlyle, GIC and others to the group.”

GBT’s next phase will be led by recently appointed Chief Executive Officer Paul Abbott, and members of GBT’s executive management team. Abbott said, “It is great news for our company, our customers and our people that we have the continued support of growth-oriented investors who are willing to make capital available for long-term value creation. We are poised for the next phase of organic growth and M&A activity, driven by continued investment in breakthrough technology and our unwavering commitment to putting our customers and their travelers at the center of everything we do.”