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ExCeL London - 30 Sep - 01 Oct 2021
The deal in which American Express GBT is set to acquire
Egencia values GBT at $5.4 billion, according to Expedia’s Q1 earnings
call in which further details of the proposed deal were revealed.
During the call, Expedia CFO Eric Hart said that the proposed deal would see
Expedia take on 14 per cent in the combined GBT business which, he said, “we
currently estimate is valued at approximately $750 million”.
Hart added that the 10-year accommodation supply
deal agreed as part of the proposed deal would generate “in excess of $60
million in EBITDA at 2019 volumes” for Expedia.
Expedia Group CEO Peter Kern said he anticipated
the proposed deal would close “in 9 to 12 months”.
Kern said, "[The proposed] deal is extremely exciting to us…it really
highlights three core things we’re trying to do. One is, find the best
opportunity for all our businesses. And in this case, we felt that putting
Egencia together with Amex GBT created a great new combined corporate
enterprise that could focus entirely on the corporate customer, and really
provide a best-in-class suite of services to serve those customers.”
He added, “As
we’ve talked about endlessly this past year, we are trying to simplify our
companies, so we can focus on the most important and largest opportunities. And
with Egencia in a great new home, should this deal proceed, we will be in a
great position to focus on our B2C and B2B businesses, and our core technology