Amex GBT acquires CWT in USD 570 million deal, ET TravelWorld News, ET TravelWorld

[ad_1]

<p>Representative image<sub></sub></p>
Representative image

In a significant move in the B2B software and services sector, Global Business Travel Group (GBTG), announced on Monday that its American Express Global Business Travel (Amex GBT) arm has entered into a definitive agreement to acquire CWT, a leading business travel and meetings solutions provider. The acquisition is valued at approximately USD 570 million on a cash-free, debt-free basis and is expected to close in the second half of 2024, subject to customary closing conditions and regulatory approvals.

The transaction will be funded through a combination of stock and cash, with Amex GBT issuing approximately 71.7 million shares of its common stock at a fixed price of USD 6.00 per share and using cash on hand to retire CWT debt and cover the remaining transaction consideration. This strategic move is projected to be break-even to earnings per share in the first year of transaction close and accretive thereafter.

Paul Abbott, CEO, Amex GBT, expressed excitement about the acquisition, stating, “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, CWT customers will gain access to Amex GBT’s proprietary software and services for travel and expense, including Neo1, Neo, and Egencia. This expanded offering will also include Select, enabling customers to integrate with leading technology partners. Additionally, customers will benefit from a wide range of professional services, such as meetings and events, consulting, and sustainability solutions, while Amex GBT’s marketplace will provide access to comprehensive and competitive content in the industry.

FCM Meetings & Events launches global venue finder platform

This platform revolutionides the booking process for meetings and group hotel accommodations within the MICE (Meetings, Incentives, Conferences, and Exhibitions) industry, offering a world-class booking experience. The platform also emphasises sustainability solutions through efficient contracting and cost controls, aligning with the growing demand for eco-friendly practices in the travel sector.

Patrick Andersen, CEO, CWT, expressed confidence in the value creation of the combined company, stating, “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.”The acquisition is expected to create greater capacity for investment in software and services, deliver significant shareholder value through synergy opportunities and efficiency gains, with approximately USD 155 million of annual run-rate synergies identified within three years, and provide CWT customers with enhanced choice and value.

  • Published On Mar 26, 2024 at 12:30 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETTravelWorld App

  • Get Realtime updates
  • Save your favourite articles


Scan to download App


[ad_2]
Source link

About admin

Check Also

Cruiser Safaris For Owners Of Resorts & Tour Agents Banned, ET TravelWorld News, ET TravelWorld

[ad_1] The Tadoba-Andhari Tiger Reserve (TATR) ban on the newly-introduced Cruiser safari vehicles for resort …

Leave a Reply

Your email address will not be published. Required fields are marked *