Paul Abbott, CEO of Amex GBT, said global business travel spend represents “a large under-penetrated opportunity” of $1.4 trillion in 2024, adding, “we see significant opportunity to continue to drive share gains.”
Amex GBT, said Abbott, has a footprint in some of the verticals where CWT had significant positions, adding that “[the acquisition] will give us sufficient volume in those industry segments to really create dedicated verticals for those specific industries.” CWT has about 4,000 clients in industries including energy, resources and marine, media, entertainment and sports, life sciences, and defense and government.
“Those are verticals we like,” said Abbott. He said they have more complexity, more value, and tend to have high levels of customer retention and customer loyalty. About 35% of CWT’s business comes from small- and medium-size companies, which will increase Amex GBT’s business in that area by about 35% and will increase sales by about $5 billion, Abbott said.
CWT also has a professional services division for meetings and events as well as for consulting services, which Amex GBT plans to use to grow its footprint in those areas.
The combined company, according to executives, will achieve savings of about $155 million within three years, with about 35% of that amount expected in 2025. Karen Williams, CFO, said about 80% of those savings is related to improved efficiency from consolidation, and the rest is related to vendor optimization.
While there has been speculation about regulatory issues, Eric Bock, chief legal officer, said he believes the transaction will close as planned. He said Amex GBT will be making some regulatory filings in the jurisdictions where they’re required, “but we’re confident that this transaction should close in the second half of the year.” He added, “So that’s our plan, and we’ll move as promptly as possible to make that happen.”
