AMEX, EGENCIA HAVE URGE TO MERGE
American Express Global Business Travel (GBT) has made a binding offer to acquire Egencia, Expedia Group’s corporate travel arm. As part of the transaction, Expedia Group would become a shareholder in, and enter a long-term strategic commercial agreement with, GBT.
The deal would bring Egencia, a leading digital travel management company, into the GBT family, which says it will “continue to invest in the Egencia brand, its people and technology, as part of the world’s leading business travel platform.”
Paul Abbott, GBT’s CEO, said: “Our strategy is to provide customers with unparalleled choice by having the best solutions for each managed travel segment that we serve. In Egencia, we would welcome the industry’s leading digital business travel platform.
“Egencia would be strengthened by GBT’s complementary technology, enterprise capabilities and cutting-edge content. This would create new opportunities for both multinational and small and medium-sized enterprise (SME) clients, suppliers and the talented teams within both organizations.”
Together, GBT and Egencia would offer comprehensive technology and customer solutions across every segment of business travel. Teaming Egencia with GBT’s Supply MarketPlace would give customers more choice and suppliers more access to business travellers.
Meanwhile, with both the Egencia platform and GBT’s Neo Technology Group, the business would be positioned to build the best solutions for the future of business travel, says GBT.
While the proposed deal is subject to consultation by Expedia Group and Egencia with their applicable employee representatives, as well as customary closing conditions including regulatory approvals, Expedia Business Services president Ariane Gorin said: “We are thrilled by the potential transaction and what GBT and Egencia could achieve together, as Expedia Group seeks to simplify our business and be a leader in all of our endeavours.
“The combination of GBT’s leading solutions with Egencia’s great technology and team would help create the world’s best business travel offerings for customers and suppliers,” she added. “At the same time, a greatly expanded, long-term accommodations supply agreement with Expedia Partner Solutions (EPS) would enhance GBT’s Supply MarketPlace and meaningfully further Expedia Group’s goal of powering businesses across the entire eco-system.”
Gorin says Expedia expects a “robust return of travel, including in the corporate space” post pandemic.
First published at Travel Industry Today