Amex GBT to Be Acquired in $6.3 Billion Take-Private Deal
American Express's business travel unit, Amex GBT, has agreed to a $6.3 billion take-private deal with Long Lake Management, which will pay shareholders $9.50 per share—a 60% premium to the last close. The deal is backed by General Catalyst and Alpha Wave.
Key Numbers
American Express (AXP) announced that its corporate travel arm, Amex GBT, has agreed to be taken private by Long Lake Management in a deal valued at $6.3 billion.
Deal Details
| Item | Value |
|---|---|
| Deal Value | $6.3 billion |
| Price per Share | $9.50 |
| Premium | 60% above last close |
| Buyer | Long Lake Management |
| Backers | General Catalyst and Alpha Wave |
Long Lake Management, supported by General Catalyst and Alpha Wave, will acquire all outstanding shares of Amex GBT for $9.50 each, representing a 60% premium over the previous closing price.
Rationale
American Express aims to streamline its business travel operations, allowing it to focus on its core credit card and financial services businesses. The deal also provides immediate value to shareholders with a substantial premium.
Regulatory Hurdles
The transaction is subject to regulatory approvals, including from the SEC and antitrust authorities. The timeline for closing has not been disclosed yet.
Impact on Stock
The announcement is expected to boost American Express (AXP) shares in the coming sessions, given the significant premium. However, volatility may persist until regulatory approvals are secured.
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