New York, USA — August 8, 2023
In short: Long Lake Management acquires American Express Global Business Travel for $6.3 billion.
American Express Global Business Travel Acquired by Long Lake Management
The News
Long Lake Management, backed by General Catalyst and Alpha Wave, has acquired American Express Global Business Travel in an all-cash deal valued at $6.3 billion, representing a 60.2% premium to the last closing price and a 65.1% premium to the 30-day volume-weighted average. Koch Industries’ KDT equity division co-invested alongside debt financing from JPMorgan, Bank of America, and MUFG. According to Long Lake CEO Alex Taubman, corporate travel management is a workflow-heavy, data-rich, relationships-driven business that has not been adequately addressed by existing solutions.
Industry Context
This acquisition positions Long Lake to offer a comprehensive workflow and data management solution for corporate travel, addressing a gap in the market where existing providers lack the depth of integration and relationship management required for large-scale corporate travel operations. Competitors like SAP Concur and Concur Technologies focus more on transactional aspects rather than the comprehensive workflow and data management emphasized by Long Lake.
Key Details
- Price: $6.3 billion
- Premium: 60.2% over last closing price, 65.1% over 30-day VWAP
- Investors: Long Lake Management, Koch Industries’ KDT equity division, JPMorgan, Bank of America, MUFG
- Effective Date: Not specified in the source article
What Travel Professionals Should Know
For TMCs managing corporate travel for large enterprises, this acquisition means access to a more integrated, data-driven travel management platform that can streamline workflows, enhance data analytics, and improve relationship management with corporate clients. This could lead to more efficient travel processes and better insights into travel spending patterns, potentially giving TMCs a competitive edge in managing corporate travel accounts.
Frequently Asked Questions
What is American Express Global Business Travel?
A global provider of corporate travel management services, offering solutions for booking, expense management, and travel policy management.
Which travel trade segments does this affect?
This acquisition primarily impacts TMCs and corporate travel departments of large enterprises, enhancing their ability to manage travel operations more efficiently and effectively.
When does this take effect?
The effective date of the acquisition is not specified in the source article.
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