Amex sells half of Global Business Travel to Certares
American Express on Wednesday said it will sell half its Global Business Travel (GBT) division to Certares, an investment group led by Travel Leaders Group co-chairman Greg O’Hara.
The transaction will "create greater investment capacity for GBT to further enhance its suite of products and services, attract new customers and grow internationally to deliver additional value to customers," Amex said.
The joint venture will continue to operate under the American Express Global Business Travel brand, but an investor group led by Certares will get a 50% stake in return for an investment of between $700 million and $1 billion.
Amex spokesperson Christine Elliott told TravelMole that "certainly international growth, digital/mobile solutions and other technology investments would be likely areas" for investing the new capital.
The deal should close in the second quarter of 2014.
AmEx’s corporate travel business has been squeezed in a tough economy, and fell 2% in the quarter ended June 30, reuters reported.
O’Hara is the former chief investment officer of JPMorgan Chase & Co’s special investments group.
GBT employees will transition to the new structure, and the GBT management team will remain in place.
GBT customers represent more than $19 billion in corporate travel spend in 138 countries.
Cheryl
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