American Express Global Business Travel Acquires CWT in $570 Million Merger to Expand Customer Choice and Increase Value for Shareholders

American Express Global Business Travel to Acquire Carlson Wagonlit Travel

The travel management industry is set for a major shakeup as American Express Global Business Travel (Amex GBT) announces plans to acquire rival company CWT for $570 million in cash and stock. The deal, which is subject to shareholder and regulatory approval, is expected to expand customer choice, create more opportunities for employees, and increase value for shareholders.

CWT CEO Patrick Andersen expressed confidence in the value creation potential of the merged entity, emphasizing the shared vision for a tech-enabled future in business travel. Amex GBT CEO Paul Abbott highlighted the benefits of combining CWT’s services with Amex GBT’s software model, predicting that the merged company will generate approximately $850 million in revenue and $70-$80 million in adjusted earnings before interest, taxes, depreciation and amortization in 2024.

The merger of these two companies aims to leverage both human expertise and technology to provide exceptional customer experiences. With CWT’s services combined with Amex GBT’s software model, customers can expect more personalized service and better data analysis capabilities. Additionally, employees from both companies are expected to benefit from increased job opportunities as they work together to create a more streamlined travel management experience.

While further updates on the merger will be provided as necessary, this move signifies a major shift in the industry towards more technology-driven solutions for business travel management. As businesses continue to adapt to changing travel patterns post-pandemic, having access to cutting-edge tools and resources will become increasingly important. This acquisition is poised to give Amex GBT a competitive edge by providing their clients with innovative solutions that can help them manage their corporate travel programs more efficiently.

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