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 will become a shareholder in, and enter a long-term strategic commercial agreement with, GBT.
Paul Abbott, GBT’s chief executive, 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 organisations.”
GBT said teaming Egencia with GBT’s Supply MarketPlace – a source of content and experiences for business travellers – would give customers more choice and offer suppliers more access to business travellers.
There would be further benefits for the expanded business thanks to the partnership of the Egencia platform and GBT’s Neo Technology Group.
Ariane Gorin, president of Expedia Business Services, added: “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.
“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 ecosystem.
“Expedia Group strongly believes in the robust return of travel, including in the corporate space. We’re excited about our potential ownership in GBT and our long-term arrangement to power Egencia and GBT, as we do for thousands of other travel companies.”
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.