Amex GBT to Go Public in SPAC Deal

American Express Global Business Travel is getting ready to list on the New York Stock Exchange through a business combination deal with special purpose acquisition company (SPAC) Apollo Strategic Growth Capital.

GBT announced the deal Friday (Dec. 3), saying it would create the world’s biggest publicly traded B2B travel platform, valuing the company at $5 billion.

“Becoming a public company will be a historic milestone on GBT’s growth journey,” said GBT Chief Executive Officer Paul Abbott. “We expect that becoming a listed company will give us the additional investment capacity to strengthen our commitment to providing unrivaled value, choice and experiences to our customers and partners.”

Read more: Amex Business Travel Makes Deal To Buy Expedia’s Egencia

The deal is expected to yield up to $1.2 billion of gross proceeds, which includes a $335 million PIPE (private investment in public equity) investment at $10 per common share.

New investors in the company include the communications platform Zoom and the travel technology company Sabre, which join existing shareholders American Express and the online travel site Expedia.

“We are thrilled to invest in GBT and look forward to working with their talented team as they strive to deliver innovative and engaging virtual, face-to-face, and hybrid meeting and event experiences,” said Zoom CFO Kelly Steckelberg. “Companies are increasingly looking for experts and best-in-class technology solutions for meetings and events in the new hybrid world, as evidenced by the demand for Zoom Events.”

In May, GBT acquired Expedia’s corporate travel arm Egencia in a deal that also made Expedia a GBT shareholder.

Also read: Business Travel Unlikely to See 2019 Levels Again Until 2024 — If Ever

This latest deal arrives at a time when the business travel industry is experiencing a slow recovery after a dismal 2020.

As we reported last month, the Global Business Travel Association has said that while the industry’s recovery wasn’t as robust as anticipated in 2021, spending should surge in 2022, with a full recovery expected by 2024. By that year, the GBTA said, the industry should return to the $1.4 trillion mark last seen in 2019.