American Express Global Business Travel (GBT), a leading global travel management company, has announced it will acquire Hogg Robinson Group (HRG) PLC, a global B2B services company specialising in travel management, in a recommended all-cash acquisition of the entire issued, and to be issued, ordinary share capital. The acquisition is conditioned on receipt of antitrust and other regulatory approvals and is expected to close in the second quarter of 2018.
Both American Express GBT and HRG have made significant investments in people and technology in recent years. The combined group will offer clients and travellers a more comprehensive range of travel management products and services. The acquisition is expected to:
- Accelerate growth by utilising complementary footprints and solutions to provide additional benefits to clients
- Create the ability to combine two advanced travel technology and development platforms to create better products and services to serve clients and travellers
- Deliver synergies through cost savings and scale benefits; and
- Leverage each company’s existing infrastructure and technology capabilities to maximise efficiencies across the business
View the full stock exchange announcement here.
Doug Anderson, Chief Executive Officer, American Express GBT, said: “The complementary geographical footprints of each company will improve the global scale and reach of our business, enabling us to achieve efficiencies across a best-in-class platform and accelerate growth. The technology roadmaps of each business provide a powerful platform from which to drive future innovation. We will deliver a superior client and traveller experience through fully-integrated travel management solutions, including booking and expense management products.”
David Radcliffe, Chief Executive Officer, HRG, said: “This transaction represents a good deal for shareholders and stakeholders. I am particularly excited and heartened by American Express GBT’s reassurance that it will be utilising the best talent and technology from within both organisations to create a truly world-class, leading-edge organisation, which will bring benefits to our clients, colleagues and supplier partners alike.”
Greg O’Hara, Chairman of the Board, American Express GBT, said: “The Board of Directors of GBT strongly endorses the acquisition of Hogg Robinson. Significant customer, operational and financial benefits are expected. This will enable the Combined Group to focus on additional value creation for customers and the marketplace, while generating new efficiency and growth opportunities for the business. I am excited at the prospect of creating a truly world class travel management company using the best available talent from both Hogg Robinson and GBT. Customers and travellers will benefit from the Combined Group’s complementary geographical footprint and technology offering. This combination will unlock meaningful value for all stakeholders.”
The acquisition is conditioned on receipt of antitrust and other regulatory approvals and is expected to close in the second quarter of 2018.
About American Express Global Business Travel
American Express Global Business Travel (GBT) equips companies of all sizes with the insights, tools, services and expertise they need to keep their travellers informed, focused and productive while on the road. With approximately 12,000 employees and operations in nearly 140 countries worldwide, GBT empowers customers to take control of their travel programmes, optimising the return on their travel and meetings investments, while, more importantly, providing extraordinary traveller care.
American Express GBT is a joint venture between American Express and a consortium of investors formed by Certares. The Certares-formed group includes Qatar Investment Authority, funds managed by BlackRock, Certares itself and Macquarie Capital. American Express GBT is a joint venture that is not wholly-owned by American Express or any of its subsidiaries (“American Express”). “American Express GBT”, “American Express” and the American Express logo are trademarks of American Express, and are used under limited license.
About Hogg Robinson Group
Hogg Robinson Group is a leading global B2B services company specialising in travel, payments and expense management. We help companies, governments and financial institutions manage and control their expenditure. We combine high-quality service delivered by experienced staff with the very latest digital solutions based on our own technology. Our aim is to provide superior service and technology solutions that add real value to our clients and meet their unique requirements.
Founded by Greg O’Hara in 2012, Certares brings together a team of experienced private equity and industry professionals with deep domain, investment, transaction and operating experience. Its investing activities focus on travel and tourism, hospitality, business and consumer services.