American Express Global Business Travel (GBT) 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 clientsCreate the ability to combine two advanced travel technology and development platforms to create better products and services to serve clients and travellersDeliver synergies through cost savings and scale benefits; andLeverage each company's existing infrastructure and technology capabilities to maximise efficiencies across the businessView 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.
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