Amex GBT to Be Acquired by General Catalyst-Backed Long Lake for $6.3 Billion
Photo Credit: Paul Abbott, CEO of American Express Global Business Travel speaking at the Global Business Travel Association’s inaugural Sustainability Summit, held in Brussels in November 2022. On Location Events / Kit Fanner
Skift Take
American Express Global Business Travel is going private with backing from major AI and tech investors. Despite a travel-tech experienced backer in General Catalyst, Long Lake will have to prove its mettle.
Long Lake Management, a private equity firm backed by tech and travel investors General Catalyst and Alpha Wave, agreed to acquire American Express Global Business Travel for $6.3 billion in cash.
The all-cash deal, which is expected to close in the second half of the year, pending regulatory approvals, would give Amex GBT shareholders $9.50 per share, a 60.2% premium to the company's closing share price May 1.
In a separate statement, American Express, which controls Amex GBT, said that Long Lake and General Catalyst agreed to acquire Amex GBT. American Express said it is selling its 30% stake in former subsidiary Amex GBT for $1.5 billion, and would record a $975 million pre-tax gain.
American Express said that its agreement to license its brand to Amex GBT and other commercial agreements will remain in place after the acq
