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American Express Global Business Travel Announces Amended Merger Agreement for CWT Acquisition

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American Express Global Business Travel (NYSE: GBTG) has announced amended terms for its CWT acquisition agreement. The revised deal values CWT at $540 million, down from the original $570 million, on a cash-free, debt-free basis.

Key changes include:

  • Increased fixed stock price of $7.50 per share (up from $6.00)
  • Reduced share issuance to approximately 50 million shares of Class A common stock (down from 72 million)
  • Cash consideration remains at $70 million
  • Extension of deadline to December 31, 2025

The expected 2024 Adjusted EBITDA multiples remain consistent at 7.6x pre-synergy and 2.5x post-synergy. The extension allows time to address the U.S. Department of Justice's antitrust lawsuit filed in January 2025. The transaction's closing remains subject to regulatory approvals and customary conditions.

American Express Global Business Travel (NYSE: GBTG) ha annunciato modifiche ai termini del suo accordo di acquisizione di CWT. L'accordo rivisto valuta CWT a 540 milioni di dollari, in calo rispetto ai 570 milioni di dollari originali, su base priva di contante e debiti.

Le modifiche principali includono:

  • Aumento del prezzo fisso delle azioni a 7,50 dollari per azione (rispetto ai 6,00 dollari)
  • Emissione ridotta di azioni a circa 50 milioni di azioni di azioni ordinarie di Classe A (in calo rispetto a 72 milioni)
  • La considerazione in contante rimane a 70 milioni di dollari
  • Estensione della scadenza al 31 dicembre 2025

I multipli EBITDA rettificati attesi per il 2024 rimangono costanti a 7,6x pre-sinergia e 2,5x post-sinergia. L'estensione consente di affrontare la causa antitrust del Dipartimento di Giustizia degli Stati Uniti presentata a gennaio 2025. La chiusura della transazione rimane soggetta ad approvazioni regolatorie e condizioni consuete.

American Express Global Business Travel (NYSE: GBTG) ha anunciado términos modificados para su acuerdo de adquisición de CWT. El acuerdo revisado valora a CWT en 540 millones de dólares, por debajo de los 570 millones de dólares originales, sobre una base libre de efectivo y deudas.

Los cambios clave incluyen:

  • Aumento del precio fijo de las acciones a 7,50 dólares por acción (desde 6,00 dólares)
  • Reducción de la emisión de acciones a aproximadamente 50 millones de acciones de acciones ordinarias Clase A (bajando de 72 millones)
  • La consideración en efectivo se mantiene en 70 millones de dólares
  • Extensión del plazo hasta el 31 de diciembre de 2025

Los múltiplos de EBITDA ajustado esperados para 2024 se mantienen consistentes en 7,6x antes de sinergias y 2,5x después de sinergias. La extensión permite tiempo para abordar la demanda antimonopolio presentada por el Departamento de Justicia de EE. UU. en enero de 2025. El cierre de la transacción sigue sujeto a aprobaciones regulatorias y condiciones habituales.

아메리칸 익스프레스 글로벌 비즈니스 여행 (NYSE: GBTG)은 CWT 인수 계약의 수정된 조건을 발표했습니다. 수정된 거래는 CWT의 가치를 5억 4천만 달러로 평가하며, 이는 원래의 5억 7천만 달러에서 하락한 금액입니다. 현금 및 부채가 없는 기준으로 평가됩니다.

주요 변경 사항은 다음과 같습니다:

  • 주식의 고정 가격 인상: 주당 7.50 달러 (6.00 달러에서 인상)
  • 발행 주식 수 감소: 약 5천만 주의 A 클래스 보통주 (7천2백만 주에서 감소)
  • 현금 고려액은 7천만 달러로 유지됨
  • 마감 기한 연장: 2025년 12월 31일까지

2024년 조정 EBITDA 배수는 7.6배 사전 시너지2.5배 사후 시너지로 일관되게 유지됩니다. 이 연장은 2025년 1월에 제기된 미국 법무부의 반독점 소송을 해결할 시간을 허용합니다. 거래의 마감은 규제 승인 및 관례적인 조건에 따라 여전히 이루어져야 합니다.

American Express Global Business Travel (NYSE: GBTG) a annoncé des termes modifiés pour son accord d'acquisition de CWT. L'accord révisé évalue CWT à 540 millions de dollars, en baisse par rapport aux 570 millions de dollars d'origine, sur une base sans liquidités et sans dettes.

Les changements clés comprennent:

  • Augmentation du prix fixe des actions à 7,50 dollars par action (contre 6,00 dollars)
  • Réduction de l'émission d'actions à environ 50 millions d'actions d'actions ordinaires de Classe A (en baisse par rapport à 72 millions)
  • La contrepartie en espèces reste à 70 millions de dollars
  • Extension de la date limite au 31 décembre 2025

Les multiples d'EBITDA ajustés attendus pour 2024 restent constants à 7,6x avant synergie et 2,5x après synergie. L'extension permet de disposer de temps pour traiter la plainte antitrust déposée par le ministère de la Justice des États-Unis en janvier 2025. La clôture de la transaction reste soumise à des approbations réglementaires et à des conditions habituelles.

American Express Global Business Travel (NYSE: GBTG) hat geänderte Bedingungen für seinen CWT-Akquisitionsvertrag bekannt gegeben. Das überarbeitete Geschäft bewertet CWT mit 540 Millionen Dollar, was einem Rückgang von den ursprünglichen 570 Millionen Dollar entspricht, auf einer bargeld- und schuldenfreien Basis.

Wesentliche Änderungen umfassen:

  • Erhöhung des festen Aktienpreises auf 7,50 Dollar pro Aktie (von 6,00 Dollar)
  • Reduzierte Aktienemission auf etwa 50 Millionen Aktien der Stammaktien der Klasse A (von 72 Millionen)
  • Bargeldzahlung bleibt bei 70 Millionen Dollar
  • Fristverlängerung bis zum 31. Dezember 2025

Die erwarteten bereinigten EBITDA-Multiplikatoren für 2024 bleiben konstant bei 7,6x vor Synergie und 2,5x nach Synergie. Die Verlängerung ermöglicht Zeit, um die Antitrust-Klage des US-Justizministeriums zu behandeln, die im Januar 2025 eingereicht wurde. Der Abschluss der Transaktion bleibt von regulatorischen Genehmigungen und üblichen Bedingungen abhängig.

Positive
  • Reduced share dilution with 22 million fewer shares to be issued
  • Higher fixed stock price of $7.50 per share (25% increase)
  • Maintained attractive EBITDA multiples (7.6x pre-synergy, 2.5x post-synergy)
  • $30 million reduction in total acquisition cost
Negative
  • DOJ antitrust lawsuit poses regulatory risk to deal completion
  • Extended timeline to December 2025 creates prolonged uncertainty
  • Additional cash needed to compensate for reduced share issuance

Insights

The amended merger agreement between Amex GBT and CWT reveals significant structural changes that reduce potential dilution for existing shareholders while maintaining expected returns. The revised transaction value of $540 million (down from $570 million) with unchanged EBITDA multiples indicates the fundamental economics remain intact despite the 5.3% price reduction.

Most notably, Amex GBT will now issue only 50 million shares versus the originally planned 72 million - a 30.6% reduction in share issuance. This is paired with a 25% increase in the fixed stock price from $6.00 to $7.50 per share, closely aligning with the current market price of $7.61.

The extension of the deadline to December 31, 2025, acknowledges the regulatory hurdles presented by the DOJ's antitrust lawsuit. This protracted timeline introduces execution risk and delays potential synergy realization, though management's maintained EBITDA multiple expectations (7.6x pre-synergy, 2.5x post-synergy) suggest confidence in the deal's fundamental value proposition.

The company's reference to its $300 million share buyback program alongside these amendments signals management's view that their equity remains undervalued despite the higher fixed stock price. This balanced approach to capital allocation - pursuing strategic M&A while returning capital to shareholders - demonstrates financial flexibility enabled by their "strong and flexible balance sheet" as mentioned in the release.

NEW YORK--(BUSINESS WIRE)-- American Express Global Business Travel, which is operated by Global Business Travel Group, Inc. (NYSE: GBTG) (“Amex GBT” or the “Company”), a leading B2B software and services company for travel, expense, and meetings & events, announced today that it has agreed with CWT to amend the existing terms of their merger agreement that was entered into on March 24, 2024 (as amended on January 17, 2025, March 17, 2025 and March 20, 2025, the “Merger Agreement”).

The amendment provides for, among other things:

  • A revised CWT transaction value of approximately $540 million (from $570 million originally agreed), on a cash-free, debt-free basis, subject to certain assumptions and purchase price adjustments. Based on this revised valuation, Amex GBT expects the 2024 Adjusted EBITDA multiple to remain in line with the 7.6x pre-synergy multiple and 2.5x post-synergy multiple of Adjusted EBITDA previously announced in March 2024.

  • A revised fixed stock price of $7.50 per share (from $6.00 per share initially agreed) for the shares of Amex GBT to be received as part of the consideration under the Merger Agreement. At the closing of the transaction, Amex GBT now expects to issue approximately 50 million shares of its Class A common stock (down from approximately 72 million shares) and to use cash on hand to fund the remaining transaction consideration (which remains unchanged at $70 million) and the retirement of CWT debt.

  • An extension of the Drop Dead Date (as defined in the Merger Agreement) to December 31, 2025, to provide the parties with additional time to defend the lawsuit filed in January 2025 by the Antitrust Division of the U.S. Department of Justice, seeking a permanent injunction to prevent the proposed transaction.

Eric J. Bock, Amex GBT’s Chief Legal Officer and Global Head of M&A, stated: “We are pleased to have reached an amended agreement with CWT and look forward to completing the transaction that will provide even more value and choice to customers and suppliers and more opportunities for CWT employees. We remain confident in the merits of our position in the lawsuit initiated by the DOJ and remain prepared to prove this in court, if required. The reduction in the shares to be issued in this transaction reflects our continued belief in the value of our equity. With our strong and flexible balance sheet, coupled with our $300 million share buyback program, we continue to create value for our shareholders.”

Closing of the transaction remains subject to the satisfaction of customary closing conditions, including the receipt of certain regulatory approvals.

About Amex GBT

Amex GBT is a leading software and services company for travel, expense, and meetings & events. We have built the most valuable marketplace in travel with the most comprehensive and competitive content. A choice of solutions brought to you through a strong combination of technology and people, delivering the best experiences, proven at scale. With travel professionals and business partners in more than 140 countries, our solutions deliver savings, flexibility, and service from a brand you can trust – Amex GBT.

Visit amexglobalbusinesstravel.com for more information about Amex GBT. Follow @amexgbt on X (formerly known as Twitter), LinkedIn and Instagram.

Forward-Looking Statements

This communication contains statements that are forward-looking and as such are not historical facts. This includes, without limitation, statements regarding our current expectations or forecasts of future events. These statements constitute projections, forecasts and forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this communication are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us, including as a result of the transaction, will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following risks, uncertainties and other factors: (1) changes to projected financial information or our ability to achieve our anticipated growth rate and execute on industry opportunities; (2) our ability to maintain our existing relationships with customers and suppliers and to compete with existing and new competitors; (3) various conflicts of interest that could arise among us, affiliates and investors; (4) our success in retaining or recruiting, or changes required in, our officers, key employees or directors; (5) factors relating to our business, operations and financial performance, including market conditions and global and economic factors beyond our control; (6) the impact of geopolitical conflicts, including the war in Ukraine and the conflicts in the Middle East, as well as related changes in base interest rates, inflation and significant market volatility on our business, the travel industry, travel trends and the global economy generally; (7) the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; (8) the effect of a prolonged or substantial decrease in global travel on the global travel industry; (9) political, social and macroeconomic conditions (including the widespread adoption of teleconference and virtual meeting technologies which could reduce the number of in-person business meetings and demand for travel and our services); (10) the effect of legal, tax and regulatory changes; (11) the decisions of market data providers, indices and individual investors; (12) the outcome of any legal proceedings that may be instituted against Amex GBT or CWT in connection with the transaction; (13) the inability to complete the transaction; (14) delays in obtaining, adverse conditions contained in, or the inability to obtain necessary regulatory approvals or complete regulatory reviews required to complete the transaction; (15) the risk that the transaction disrupts current plans and operations as a result of the announcement and consummation of the transaction; (16) the inability to recognize the anticipated benefits of the transaction, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain key employees; (17) costs related to the transaction; (18) risks related to the business of CWT or unexpected liabilities that arise in connection with the transaction or the integration with CWT; (19) the risk that the assumptions, estimates and estimated adjustments described in this communication may prove to be inaccurate; and (20) other risks and uncertainties described in the Company's Form 10-K, filed with the SEC on March 7, 2025, and in the Company's other SEC filings. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Non-GAAP Financial Measures

Adjusted EBITDA is defined as net income (loss) before interest income, interest expense, gain (loss) on early extinguishment of debt, benefit from (provision for) income taxes and depreciation and amortization and as further adjusted to exclude costs that management believes are non-core to the underlying business of the Company, consisting of restructuring, exit and related charges, integration costs, costs related to mergers and acquisitions, non-cash equity-based compensation, fair value movements on earnout and warrant derivative liabilities, long-term incentive plan costs, certain corporate costs, foreign currency gains (losses), non-service components of net periodic pension benefit (costs) and gains (losses) on disposal of businesses.

This communication contains non-GAAP financial measures related to the anticipated acquisition. Amex GBT believes these forward-looking non-GAAP measures are of interest to investors. We have not reconciled these forward-looking non-GAAP measures to their corresponding GAAP measures because certain items that impact these measures are unavailable without unreasonable efforts, out of Amex GBT’s control and/or cannot be reasonably predicted without unreasonable efforts.

Media:

Megan Kat

Senior Director Global Communications and Public Affairs

megan.kat@amexgbt.com

Investors:

Jennifer Thorington

Vice President, Investor Relations

investor@amexgbt.com

Source: Global Business Travel Group, Inc.

FAQ

What is the new valuation for CWT in the amended GBTG merger agreement?

The revised CWT transaction value is approximately $540 million, reduced from the original $570 million, on a cash-free, debt-free basis.

How many shares will GBTG issue for the CWT acquisition?

GBTG will issue approximately 50 million shares of Class A common stock, reduced from the originally planned 72 million shares.

What are the EBITDA multiples for the GBTG-CWT merger?

The 2024 Adjusted EBITDA multiples remain at 7.6x pre-synergy and 2.5x post-synergy.

When is the new deadline for the GBTG-CWT merger completion?

The deadline has been extended to December 31, 2025, to address the DOJ antitrust lawsuit.

What is the new fixed stock price per share in the amended GBTG-CWT deal?

The fixed stock price has been increased to $7.50 per share from the initial $6.00 per share.
Global Business Travel Group, Inc.

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