American Express Global Business Travel is exploring a sale “after
a tough run on the stock market” according to a report from Bloomberg late last
night which cited people familiar with the matter.
The travel management company is working with advisers and could
attract interest from “other corporate-focused travel platforms and private
equity suitors,” according to Bloomberg sources, though a sale is far from certain.
Amex GBT declined to address the report, telling BTN Europe
only that, as a matter of policy, it does
not comment on M&A rumours or speculation.
Shares in Amex GBT, which is listed on the New York Stock
Exchange, were up 3 per cent to $7.32 at close yesterday, but are down 20 per
cent from $9.16 at the start of the year.
Its Q3 earnings report revealed a significant boost in revenue
and transactions following its acquisition of CWT, with revenue up 13 per cent
year-on-year to $674 million and transactions up 19 per cent.
Excluding CWT’s figures, revenue was up 3 per cent year on
year in Q3 and transactions increased by 4 per cent, which the company said was
in line with expectations.
Total transaction value incorporating CWT’s business
increased 23 per cent year-on-year to $9.5 billion. Excluding CWT, the increase
was 9 per cent year over year.
Amex GBT went public in May 2022 via a special purpose
acquisition company (SPAC) Apollo Strategic Growth Capital.
In September this year it completed the $540 million acquisition
of CWT – some 17 months after first announcing its plans – and is now
acting on the delivery of $155 million in “synergies” it expects to make within
three years of sealing the deal.
A month later, on 4 October, Amex GBT unveiled a “strategic
alliance” with booking and expense specialist Concur that would see the launch
of a new platform, called Complete, for joint customers of the companies. The
development has left many travel managers and rival travel management companies
assessing its impact on them and how it might affect their strategy moving
forward.