Amex GBT to Acquire CWT for $570 Million

Amex GBT plans to acquire CWT for about $570 million, a deal that would combine two of the industry’s largest corporate travel companies. 

Travel Weekly ranked Amex GBT and CWT as No. 3 and No. 5, respectively, among the world's largest travel agencies in 2022 based on sales.

The deal would be funded by a combination of stock and cash and is expected to close in the second half of 2024, the companies said.

“Global business travel spend represents a large under-penetrated opportunity of $1.4 trillion in 2024,” Amex GBT CEO Paul Abbott said during a conference call Monday. “So we see significant opportunity to continue to drive share gains and growth both organically and organically.”

CWT strengthens various parts of the business, Abbott said. CWT has about 4,000 clients in industries including energy, resources and marine, media, entertainment and sports, life sciences, and defense and government.

The companies said the combined entity aims to create efficiencies leading to a savings of about $155 million within three years, with about 35% of that amount expected in 2025.

More from Monday's conference call: Amex GBT Execs Explain Biz Travel Mega-Merger With CWT: Size, Costs and AI

Amex GBT was spun out from American Express as a joint venture in 2014. It generated $2.3 billion in revenue in 2023, an increase of $439 million from the year prior. The company narrowed its losses last year to $136 million.

Amex GBT had 19,000 employees in 2022.

Founded in 1994, CWT is considered one of the legacy corporate travel and meetings companies, as is Amex GBT. CWT said it is expected to generate about $850 million of revenue this year, with an adjusted earnings before interest, taxes, depreciation, and amortization of between $70 million and $80 million.

CWT has 4,000 clients, who would gain access to Amex GBT's products and services, assuming the deal goes through. CWT had 12,000 employees in 2022.