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 rumors or
speculation.
Shares in Amex GBT, which is listed on the New York Stock
Exchange, were up 3 percent to $7.32 at close yesterday, but are down 20 percent
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 percent year-on-year to $674 million and transactions up 19 percent.
Excluding CWT’s figures, revenue was up 3 percent year on
year in Q3 and transactions increased by 4 percent, which the company said was
in line with expectations.
Total transaction value incorporating CWT’s business
increased 23 percent year-on-year to $9.5 billion. Excluding CWT, the increase
was 9 percent year over year.
Amex GBT went public in May 2022 via a special
purpose acquisition company 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 October 4, 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.