In what would be one of the largest mergers of travel management companies in recent history, American Express Global Business Travel announced Monday that it had agreed to acquire rival CWT for $570 million in cash and stock.

If the transaction receives shareholder and regulatory approval, Amex GBT said it expects the transaction to close in the second half of 2024. The boards of directors of both companies have approved the deal, according to Amex GBT.

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Both companies are mega-agencies that rank at the top of Travel Weekly’s annual list of powerhouses. In the most recent list, Amex GBT was No. 3, with $23 billion in annual sales in 2022. CWT was No. 5, with $13 billion.

“Integrating CWT into Amex GBT’s proven software and services model will create more choice for customers, more opportunities for people, and more value for shareholders,” Paul Abbott, CEO of Amex GBT, said in a statement. Amex GBT said it expects CWT to generate revenue of about $850 million in 2024 and adjusted earnings before interest, taxes, depreciation and amortization of $70 million to $80 million.

“Joining forces with Amex GBT helps us accelerate our vision for a technology future for business travel, where people and technology combine to deliver an exceptional customer experience,” Patrick Andersen, CEO of CWT, said in a statement. “We are very confident in the value creation of the combined business.”

This report was originally published in Business Travel News.

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