BREAKINGVIEWS-Amex business travel sale carries few reservations

American Express Company
Global Business Travel Group, Inc. Class A

American Express Company

AXP

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Global Business Travel Group, Inc. Class A

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Sebastian Pellejero

NEW YORK, May 6 (Reuters Breakingviews) - The charge-card giant's corporate software spinoff is going private for $6 bln. A 60% premium from buyout shop Long Lake, which retrofits firms with AI, falls short of the 2022 debut price. Cash in hand, however, beats contending with an oil crisis and an awkward share register.

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CONTEXT NEWS

American Express Global Business Travel said on May 4 it had agreed to be acquired by private equity firm Long Lake Management for $9.50 per share in cash, valuing the company at about $6.3 billion.

Investors including American Express, Expedia Group, Qatar Investment Authority and BlackRock support the sale. Charge-card giant Amex, which spun off the business in 2022, said it would sell its roughly 30% equity stake as part of the deal.

Rothschild & Co is advising Amex GBT's special board committee. Citi, JPMorgan, and Bank of America are advising Long Lake and Moelis is advising Koch Equity Development.


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