American Express Global Business Travel (AXP) - Get American Express Company Report said on Tuesday it planned to acquire Egencia, the corporate-travel arm of Expedia (EXPE) - Get Expedia Group Inc. Report.
As part of the agreement, Expedia, the Seattle online travel-services provider, will become a shareholder in and will enter into a long-term commercial agreement with Global Business Travel, the companies said in a statement.
Terms weren't disclosed.
GBT is based in London. It's owned half by American Express and half by a group of investors led by the New York private-equity firm Certares.
“Egencia would be strengthened by GBT’s complementary technology, enterprise capabilities and cutting-edge content,” Global Business Travel Chief Executive Paul Abbott said in a statement.
“This would create new opportunities for both multinational and small and medium-sized enterprise clients, suppliers," and the teams within both organizations, he added.
“Expedia Group strongly believes in the robust return of travel, including in the corporate space," Ariane Gorin, president of Expedia Business Services, said.
Previously, the private equity giant Carlyle Group (CG) - Get Carlyle Group Inc (The) - Ordinary Shares Report was involved in the deal, intending to buy a 20% stake in the joint venture, but pulled out amid the COVID-19 pandemic, Bloomberg News reported.
The proposed deal is subject to consultation by Expedia Group and Egencia with their applicable employee representatives, as well as closing conditions including regulatory clearances, the companies said.
At last check American Express shares were trading 0.2% lower at $154.43. Expedia shares were trading 0.7% lower at $173.55.