American Express Global Business Travel (Amex GBT) has reached an agreement to acquire CWT, a leading global provider of business travel and meetings solutions, for $570 million.
In a press release issued on Monday (March 25), both companies revealed that the proposed acquisition would grant CWT’s 4,000 customers access to the Amex GBT ecosystem, potentially generating around $850 million in revenue.
However, the completion of the transaction is contingent upon obtaining regulatory approvals and fulfilling customary closing conditions.
Amex GBT CEO Phil Abbott expressed optimism 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.”
The company’s diverse portfolio encompasses consulting and sustainability solutions, alongside a marketplace offering access to various additional offerings.
Upon completion of the acquisition, the Shared suite, including Neo 1, Neo, Egencia, and the Select solution, facilitates integration with technology partners.
The anticipated synergies from the merger are estimated to yield approximately $155 million, enhancing the combined entity’s capacity for investment in software and services, as highlighted in the release.
CWT CEO Patrick Andersen emphasized the strategic alignment of the two companies, 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. We are highly confident in the value creation of the combined company.”
Amex GBT executives shared insights during the company’s quarterly earnings call on March 5, indicating a growing recognition among small- to medium-sized business (SMB) customers regarding the benefits of managed travel services.
Abbott noted a record-breaking $2.2 billion in new wins from SMBs in 2023, with approximately 30% originating from previously unmanaged customers seeking the cost savings and control provided by Amex GBT solutions—a 5-percentage point increase compared to 2022.
