American Express Global Business Travel has recently agreed to be acquired by Long Lake Management in a significant all-cash deal valued at $6.3 billion. This acquisition, announced on Monday, will see shareholders receiving $9.50 per share, representing a 60.2% premium over the stock’s closing price on May 1. The deal has already caused a 57% surge in Amex GBT’s stock during pre-market trading.
The completion of the acquisition is subject to regulatory approvals, with both companies aiming for a closing date in the latter half of 2026. This transaction will result in Amex GBT going private and marks Long Lake’s first take-private deal, as reported by Bloomberg.
American Express, holding around 30% of Amex GBT and being its largest single shareholder, stands to gain $1.5 billion in cash and a $975 million pre-tax gain from the sale. The existing business relationships between the two companies, including the usage of the American Express name by Amex GBT, are expected to remain unchanged post-acquisition.
Notably, a group of major shareholders, including Expedia, Qatar Investment Authority, BlackRock, and American Express, representing 69% of outstanding shares, have pledged their votes in favor of the acquisition.
Long Lake’s vision for the future of corporate travel is centered around the transformative power of AI. The company has developed a platform called Nexus to revolutionize how corporate travel functions and has strategically acquired various services-sector companies to support this vision.
CEO of Amex GBT, Paul Abbott, expressed satisfaction with the agreement, stating that it delivers a compelling outcome for shareholders by providing substantial value at an attractive premium. On the other hand, Long Lake’s co-founder and CEO, Alex Taubman, emphasized the importance of AI and human agents working together seamlessly to shape the future of business travel.
American Express Global Business Travel, initially a corporate travel spinoff from American Express, went public in 2022 through an Apollo-backed SPAC. The company offers a range of software and services covering travel, expense management, and meetings and events. A notable merger with CWT worth $540 million concluded last September, further solidifying Amex GBT’s position in a competitive market landscape alongside Booking Holdings, BCD Travel, and Navan.
This acquisition marks a significant milestone for both American Express Global Business Travel and Long Lake Management, paving the way for a new chapter in the evolution of corporate travel through innovative technologies and strategic partnerships.
