Amex GBT agrees to $6.3 billion take-private deal with Long Lake
American Express Global Business Travel has recently announced that it has agreed to be acquired by Long Lake Management in a significant all-cash deal valued at $6.3 billion. This acquisition marks a major move in the corporate travel industry, with shareholders set to receive $9.50 per share, representing a substantial 60.2% premium over the stock’s closing price on May 1. The deal has already seen positive effects on the market, with Amex GBT stock surging by 57% in pre-market trading on Monday.
Before the acquisition can be finalized, regulatory approvals will need to be obtained, with both companies aiming for a closing date in the latter half of 2026. This deal will take American Express Global Business Travel private and will be the first take-private for Long Lake, as reported by Bloomberg. The sale will also result in American Express receiving $1.5 billion in cash and a $975 million gain before taxes, given its significant 30% ownership stake in Amex GBT.
Major shareholders, including Expedia, Qatar Investment Authority, BlackRock, and American Express, have already pledged their support for the transaction, accounting for 69% of outstanding shares. In terms of financing, Koch Inc.’s investment arm and Long Lake’s investor base have provided equity for the purchase, while a debt package has been arranged by JPMorgan Chase, Bank of America, Citigroup, and Mitsubishi UFJ Financial Group. Citigroup, JPMorgan Chase, and Bank of America have guided Long Lake through the acquisition process, with Rothschild & Co. advising Amex GBT’s special committee.
Amex GBT CEO Paul Abbott expressed his satisfaction with the agreement, stating, “This agreement delivers a compelling outcome for our shareholders, providing them a substantial, certain cash value at an attractive premium.” Long Lake’s vision for the future of business travel revolves around the integration of AI and human agents, with their platform Nexus at the forefront of this transformation. Long Lake’s co-founder and CEO, Alex Taubman, emphasized the importance of AI and human collaboration in shaping the future of corporate travel.
Originally founded as a corporate travel spinout from American Express, Amex GBT 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. The acquisition of CWT last September further solidified Amex GBT’s position in the market, where it competes with industry giants like Booking Holdings, BCD Travel, and Navan.
The acquisition of American Express Global Business Travel by Long Lake Management signifies a significant shift in the corporate travel landscape, with both companies poised to drive innovation and transformation in the industry. This move is set to reshape how businesses approach travel management and highlights the growing importance of AI in streamlining corporate travel operations.
