“Largest investment made in a travel management company”
American Express has set up a joint venture for its Global Business Travel (GBT) division by selling a 50% stake for $900 million. The new joint venture has seen half the division come under the control of an investor group led by investment management firm Certares.
The deal also means American Express will separate its GBT operations into a dedicated holding structure that will include certain assets and liabilities. Amex originally announced its intention to set up a joint venture transaction in September last year.
“To our knowledge, this would be the largest single investment made in a travel management company,” Bill Glenn, who will be CEO of the joint venture, said in a statement.
“We believe it will accelerate our growth by funding meaningful advances in technology, analytics and service excellence that will benefit suppliers, partners and our global customer base. We account for more corporate travel sales than any other TMC, and these initiatives will put us in a better position to help travel buyers manage travel spend and support their travellers.”
TTG Digital / Forbes
[pictured: Emirates Executive; photo courtesy Emirates]