FX.co ★ Global Business Travel: Amex GBT To Buy CWT In $570 Mln Deal

Global Business Travel Group, Inc. (GBTG), a B2B software and services company, disclosed on Monday its decision for American Express Global Business Travel (Amex GBT) to definitively purchase CWT, a business travel and meetings solutions provider. This transaction, valued at approximately $570 million, will be on a cash-free, debt-free basis.

Earnings per share are projected to break-even in the first year following the transaction's completion, with an expected increase thereafter. The deal's closure is anticipated in the latter half of 2024, contingent on fulfilling standard closing conditions and receiving specific regulatory approvals.

The actual purchase price will be adjusted based on certain assumptions, and the deal will be financed using a mix of stock and cash. Upon the deal's completion, Amex GBT plans to issue close to 71.7 million shares of its common stock at a steadfast rate of $6.00 per share, while utilizing cash on hand to retire CWT's debt and manage the remaining transaction considerations.

Through this deal, Amex GBT expects to realize around $155 million annual synergies within three years, with approximately 35% projected to be achieved in 2025. CWT, whose customer base approximates 4,000, is anticipated to generate roughly $850 million in revenues and $70 million-$80 million in Adjusted EBITDA in 2024.

Subsequent to the deal's closure, CWT's customers will gain access to Amex GBT's distinctive software and services for travel and expense management, inclusive of Neo1, Neo and Egencia, and Select, which allows for integration with technology partners.