American Express Global Business Travel (Amex GBT) announced last week that it would acquire Carlson Wagonlit Travel (CWT), a resounding consolidation move for the travel management industry globally.
Amex is ranked third in the world and CWT fifth by US industry insider publication Travel Weekly.
“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 Paul Abbott, CEO of Amex GBT, in the company’s official release.
The deal values CWT at US$570 million (R10,8 billion) and is expected to be finalised in the second half of 2024. It will still be subject to a number of regulatory approvals and funded using a combination of cash and stock.
Travel News spoke to Morne du Preez, the CEO of Tourvest Travel Services (TTS), about the acquisition. TTS is American Express GBT’s South African partner. Although the details of what the deal could mean for TTS are unclear, Du Preez revealed that the team was “very excited” about the prospect.
CWT lies within BidTravel’s portfolio, one of its many travel brands. BidTravel was unavailable for comment.
Once the deal concludes:
- The acquisition will give CWT’s customers the ability to integrate with Amex GBT’s leading technology partners and software and services, such as Neo1, Neo and Egencia, and Select.
- Amex GBT’s marketplace will provide its customers with “access to the most comprehensive and competitive content in the industry” and “the broadest portfolio of professional services, including meetings and events, consulting and sustainability solutions”.
“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,” said Patrick Andersen, CEO of CWT.
Industry insight
Although merger and acquisition activity in the travel and tourism space dropped during the first two months of the year, Otto de Vries, Asata CEO, believes this won’t be the last sizeable acquisition that the industry will see.
“The success of these mergers is based on scale, and as market competition shrinks, it empowers these organisations in terms of how they negotiate with buyers.”
