Amex GBT Expands Empire: Acquires CWT For $570M In Bold Business Travel Move
Portfolio Pulse from Shivani Kumaresan
American Express Global Business Travel (Amex GBT), operated by Global Business Travel Group, Inc (NYSE:GBTG), has agreed to acquire CWT for $570 million. The deal, expected to close in the second half of 2024, will be funded through stock and cash. CWT is anticipated to generate $850 million in revenues and $70-$80 million in Adjusted EBITDA in 2024. The acquisition aims to create value for customers, employees, and shareholders, with $155 million in synergies identified. GBTG's stock rose 3.91% in premarket trading to $5.85.
March 25, 2024 | 1:06 pm
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POSITIVE IMPACT
GBTG's acquisition of CWT for $570M is expected to enhance shareholder value through synergies and efficiency gains. The deal, closing in H2 2024, is anticipated to be break-even to EPS in the first year and accretive thereafter.
The acquisition of CWT by GBTG is a strategic move to expand its business travel empire, expected to generate significant revenue and EBITDA. The positive premarket stock movement indicates investor optimism. The deal's financing through stock and cash, along with the identified synergies, suggests a positive outlook for GBTG's financial health and stock performance in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100