The corporate travel platform, which is operated by Global Business Travel Group (GBTG), has entered into a definitive agreement for the acquisition. The transaction is expected to close in the second half of the year, subject to customary closing conditions, the companies said in a Monday (May 4) press release.
The transaction will combine Long Lake’s applied AI capabilities with Amex GBT’s marketplace, customer relationships and technology solutions, according to the release.
Long Lake co-founder and CEO Alex Taubman said in the release that a combination of AI and human agents will redefine business travel, delivering faster booking times, proactive disruption resolution and frictionless travel administration.
“In partnership with Long Lake, Amex GBT will continue to invest heavily in these capabilities and continue to set the gold standard for customer excellence,” Taubman said in the release.
General Catalyst, a global investment and transformation company whose chairman and managing director is former American Express chairman and CEO Ken Chenault, is supporting the acquisition. Global alternative asset manager Alpha Wave is too, the release said.
Advertisement: Scroll to Continue
Amex GBT’s brand licensing agreement with American Express will remain in place, per the release.
Amex GBT CEO Paul Abbott said in the release that the transaction shows the success of the company’s strategy, will deliver substantial cash value at an attractive premium to its shareholders, and will enable better service to customers.
“General Catalyst and Alpha Wave, among Long Lake’s world-class investors, have backed some of the most successful technology companies in the world,” Abbott said in the release. “Together with Long Lake’s applied AI capabilities and our travel expertise, global scale and trusted customer and supplier relationships built over decades, Amex GBT is driving the transformation of business travel.”
Amex GBT announced in a separate press release that during the first quarter, the company delivered revenue growth of 35%, new wins value of $3.4 billion, and 96% customer retention.
The company said that given the announcement of the proposed acquisition, it will not host an earnings call.
American Express said in a Monday press release that it will sell its approximately 30% equity interest in GBTG and, upon closing of the transaction, expects to receive about $1.5 billion.
“The transaction does not change the companies’ current brand licensing and commercial agreements and their commitment to serving customers,” American Express said in the release.
It was reported in September that online booking giants are forging relationships with AI companies to counter the encroachment of AI agents.
The PYMNTS Intelligence report “At Your Service: Generative AI Arrives in Travel and Hospitality” found that generative AI is revolutionizing the travel and hospitality sectors by offering innovative solutions that enhance guest experiences and streamline operations.
