American Express Global Business Travel has announced a definitive agreement to acquire CWT, a global business travel and meetings solutions provider, for approximately $570 million.

The transaction is expected to close in the second half of 2024, pending customary closing conditions and regulatory approvals.

Amex GBT, which operates under Global Business Travel Group, Inc. (NYSE: GBTG), will fund the acquisition through a mix of stock and cash. The deal values CWT at a pre-synergy multiple of 7.6x based on CWT's projected 2024 Adjusted EBITDA of $70 million to $80 million. Including identified synergies of approximately $155 million, the post-synergy multiple drops to 2.5x Adjusted EBITDA.

The acquisition is expected to be break-even to earnings per share in the first year after closing and accretive thereafter.

CWT is anticipated to bring in roughly $850 million in revenue for 2024 and serves 4,000 customers globally. The acquisition is projected to offer Amex GBT customers a broader selection of software and services, including access to Amex GBT's proprietary platforms such as Neo1, Neo, and Egencia, as well as Select, which integrates with leading technology partners.

Paul Abbott, CEO of Amex GBT, stated that the acquisition would provide more choices for customers, more opportunities for employees, and more value for shareholders. Patrick Andersen, CEO of CWT, echoed this sentiment, expressing confidence in the value creation of the combined company.

The transaction is structured with Amex GBT issuing approximately 71.7 million shares of its common stock at a fixed price of $6.00 per share and utilizing cash on hand to retire CWT debt and cover the remaining transaction consideration. CWT shareholders, primarily investment funds, will have a lockup period for their shares post-transaction.

Amex GBT will hold an investor conference call today at 8:30 AM Eastern Time to discuss the acquisition. The call and accompanying slides will be accessible on the Amex GBT Investor Relations website.

The acquisition is part of Amex GBT's strategic growth plan and is expected to create significant shareholder value through synergy opportunities and efficiency gains. The company maintains a strong balance sheet, with post-deal leverage remaining within its target range.

This news is based on a press release statement.