American Express Global Business Travel is betting big on business travel's recovery post-pandemic, announcing plans to acquire rival CWT for $570 million.
The cash-and-stock acquisition, which must be approved by shareholders and regulatory authorities, is expected to close sometime in the second half of 2024.
The deal would add 4,000 new clients for Amex GBT, which anticipates CWT to generate approximately $850 million in revenue this year. The two companies ranked inside the top five on Travel Weekly's most recent Power List.
"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," Amex GBT CEO Paul Abbott said in a statement.
"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," added CWT CEO Patrick Andersen. "We are highly confident in the value creation of the combined company."
According to a recent forecast from the Global Business Travel Association (GBTA), corporate travel spending is expected to recover to its pre-pandemic total of $1.4 trillion in 2024 and grow in the years to come.
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