Amex GBT to acquire CWT

Two of the largest corporate travel agencies want to join forces to create a single giant to grow in an industry where many companies still book business travel manually

AmexGBT said the acquisition of CWT will expand its client base by 4,000, adding to its existing 20,000 clients. “Global business travel spend represents a large under-penetrated opportunity of $1.4 trillion in 2024,” Amex GBT CEO Paul Abbott said during a conference call Monday.

Key takeaways

• About 35% of CWT’s business originates from small- and medium-sized enterprises. This will contribute to a projected 35% boost in Amex GBT's presence in this sector, equating to approximately $5 billion in increased sales, according to Abbott;
• Additionally, CWT possesses a professional services division catering to meetings, events, and consulting, which Amex GBT intends to leverage for expanding its market share in this domain;
• Amex GBT's previous acquisitions include the $575 million purchase of Hogg Robinson Group in 2018 and the acquisition of Egencia from Expedia in 2021. According to Karen Williams, the chief financial officer, both of these acquisitions resulted in a 24% increase in incremental revenue;
• Given their status as two of the largest travel agencies globally, regulatory approval may face some opposition.

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