Skift Take
Brand-new financiers consist of Sabre and Zoom– what does that tell you about the future of travel management?
Matthew Parsons
American Express Global Business Travel plans to combine with an Apollo Management-backed blank check company that will take the corporate travel giant public, the company revealed Friday.
The merger will value Amex GBT at $5.3 billion, and the transaction will produce the agency as much as $1.2 billion, including a $335 million worth of personal investment in public equity (PIPELINE). New investors include Sabre, Zoom, Ares Management Corporation and adviser HG Vora.
Amex GBT likewise obtained commitments for an additional $1 billion term loan facility, to be developed under its existing credit contract to repay $600 million of certain existing term loan centers and to provide an incremental $400 million of financing for general corporate functions.
The deal is anticipated to be completed in the first half of 2022, subject to closing conditions. As soon as complete, the combined business will be renamed Global Business Travel Group, Inc. Nevertheless, it will continue to carry out business under its existing name and brand, American Express Global Company Travel, due to an 11-year hallmark arrangement to work upon the offer’s closure.
The travel agency group, which is half owned by a financier group led by Certares and half owned by American Express, had only simply finished its acquisition of Egencia.
Amex GBT utilized to be entirely owned by American Express, however was spun off as a joint endeavor in 2014. At the time, the travel bureau got a $900 million financial investment from the Certares-led group. In 2019, Amex GBT appointed Paul Abbott, former primary industrial officer of American Express, as CEO, in part to help promote innovation development.
“We expect that becoming a noted company will provide us the extra investment capability to strengthen our dedication to providing unique value, choice and experiences to our clients and partners,” said Abbott.
The travel management sector is rapidly combining. The pandemic spurred a crazy 18-month duration of restructuring, refinancing and acquisitions in its wake. CWT also just recently exited Chapter 11 insolvency protection to support its finances, vowing to invest $100 million in its myCWT travel management platform.
The listing on the New York Stock Exchange comes as technology-focused rival companies TripActions and TravelPerk gaining ground. TripActions stated it is now valued at $7.25 billion, following a $275 million fundraising round in October, and like TravelPerk has its sights set on expanding in Europe. It just recently designated a new vice president of sales for southern Europe, Zahir Abdelouhab, who will release and develop the business’s sales operations these areas.
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Upgraded Oct. 13, 2021
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