A recapitalisation has taken place at American Express Global Business Travel (GBT) but the financial details have been kept under wraps.
American Express will retain a half share in what is claimed to be the world’s largest travel management company under the arrangement which values GBT at $5 billion, according to the Wall Street Journal.
GBT has more than 18,000 staff across 140 countries and manages $35 billion of corporate travel a year.
The equity recapitalisation of the joint venture ownership structure is designed to “maintain GBT’s focus on its long-term growth strategy,” the company said.
Private equity firm Carlyle Group is buying a stake in the business along with a consortium of investors.
GBT was a wholly-owned unit of Amex until 2014 when it sold half its stake to a group of investors led by investment firm Certares.
A part of the stake owned by the Certares led-investor group is being sold to Carlyle Global Partners, Singapore’s sovereign wealth fund GIC, the University of California Office of the Chief Investment Officer of the Regents and Kaiser Permanente.
The terms of the deal were not disclosed.
Greg O’Hara, founder and senior managing director of Certares, will continue as executive chairman of GBT.
He said: “This investment validates the success of the joint venture and underscores the strength of our long-term growth strategy.
“We are pleased to continue working with American Express and nearly all of our original investors, as well as welcoming Carlyle, GIC and others to the group.”
Recently appointed chief executive Paul Abbott and the executive management team will continue in their current roles.
Abbott said: “To have the continued support of growth-oriented investors willing to commit capital for long-term value creation is great news for our business, our customers and our people.
“We are poised for the next phase of organic growth and M&A activity, fuelled by continued investment in breakthrough technology and our unwavering commitment to putting our customers and their travellers at the centre of everything we do.”
GBT announced last week that president Philippe Chereque will leave on March 31 to join Certares with Avios chief Drew Crawley joining as chief commercial officer on April 1.