American Express Global Business Travel (Amex GBT) announced it has entered into an agreement to acquire CWT, a global TMC, in a transaction that values CWT at approximately $570 million on a cash-free, debt-free basis, subject to certain assumptions and purchase price adjustments. The transaction will be funded by a combination of stock and cash and is expected to close in the second half of 2024, subject to the satisfaction of customary closing conditions, including the receipt of certain regulatory approvals.

CWT serves 4,000 customers and is expected to generate approximately $850 million in revenues and from $70 million to $80 million of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in 2024, according to the announcement.

Paul Abbott, Amex GBT’s CEO, said bringing CWT onto the Amex GBT software and services model “will create more choice for customers, more opportunities for people and more value for shareholders.”

After the acquisition closes, CWT customers will have access to Amex GBT’s proprietary software and services for travel and expense, including Neo1, Neo and Egencia, in addition to Select, which enables customers to integrate with leading technology partners.

Customers would also have access to a portfolio of professional services, including meetings and events, consulting and sustainability solutions. In addition, said the announcement, Amex GBT’s marketplace would provide access to the most comprehensive and competitive content in the industry.

Patrick Andersen, CEO of CWT, said 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.”

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