The travel management company has bought up its rival for $570 million (£450.6 million) on a cash-free and debt-free basis. The transaction will be funded by a combination of stock and cash and is expected to close during the second half of this year.
“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,” said Amex GBT chief executive Paul Abbott.
As part of the deal, Amex GBT will acquire the rival’s 4,000 global customers, giving them access to all of its proprietary software for travel and expenses such as Neo, Egencia and Select, as well as to additional consulting, sustainability and meetings solutions.
CWT is expected to generate earnings of between $70 to $80 million this year (ebitda) off the back of expected revenue of around $850 million.
Morgann Lesne, travel banker and partner at Paris-based M&A firm Cambon Partners, said the deal was testament to 2024 becoming “the biggest-ever year” for M&A in the travel technology space.
“A wave of inevitable consolidation following Covid needs to take place while at the same time high interest rates have stalled start-up fundraising, leading to people having to merge or face closing,” he said.
“Meanwhile, record tourism figures for 2023 and a very positive outlook for 2024 are leaving many players feeling confident that now is the right time to acquire competitors."
