American Express has closed on a previously announced joint venture for its Global Business Travel division (GBT), it announced today. The deal gives American Express 50 percent ownership in GBT; the other 50 percent belongs to an investor group that, in exchange for its ownership stake, has made a $900 million investment in the new entity.
According to American Express, the new joint venture will "build upon GBT's technology innovations to support digital and premium servicing capabilities, mobile applications, improved reporting tools and itinerary management solutions," as well as meetings and events management. It will continue to operate under the "American Express Global Business Travel" brand.
"With the creation of the joint venture and the infusion of $900 million of capital from our investors, we now have even greater resources that the marketplace requires to not only stay ahead of the curve, but to create the curve," Bill Glenn, GBT's newly appointed president and CEO, said in a statement. "For American Express Global Business Travel, technology is an area of investment, expertise and innovation, meeting the needs of the traveler and also offering control and transparency to the travel manager or meeting professional. Our immense data repository will deliver even greater value to our customers and partners. With our expanding footprint worldwide and new capabilities, we will continue to offer clients global reach complemented by local expertise. In short, we believe that we now have a formula like no other."