CHICAGO — American Express Global Business Travel (Amex GBT) announced it entered into a definitive agreement to acquire CWT, a global business travel and meetings solution provider that serves 4,000 customers in more than 130 countries.
Once the acquisition is finalized, the customers of CWT would have access to proprietary software and services for expense and travel from Amex GBT, including Neo, Neo1, Egencia and Select, and access to Amex GBT’s marketplace of comprehensive and competitive content. The acquisition also allows CWT customers to access a broad portfolio of professional services, like meetings and events, sustainability solutions and consulting.
“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,” stated Amex GBT CEO Paul Abbott.
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The transaction, which is expected to close in the final half of 2024 subject to regulatory approvals and closing conditions, values CWT at about $570 million on a cash-free, debt-free basis, and the transaction will be funded by a combination of cash and stock. CWT is expected to generate about “$850 million of revenues and $70-80 million of Adjusted EBITDA in 2024,” according to Amex GBT.
“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. We are highly confident in the value creation of the combined company,” CWT CEO Patrick Andersen stated.
The acquisition is expected to deliver shareholder value due to the synergy opportunities and efficiency gains to come from the combination, and approximately $155 million of synergies have been identified, according to Amex GBT.
