-- American Express Global Business Travel, which is operated by Global Business Travel (GBTG), on Monday agreed to be acquired and taken private by Long Lake Management in an all-cash deal worth about $6.3 billion.
Shareholders of American Express Global Business Travel will receive $9.50 per share in cash, representing a premium of about 60% to the travel software and services company's closing stock price on Friday.
Shares of the firm jumped about 58% in Monday trade, taking its year-to-date gain to around 22%.
"This agreement delivers a compelling outcome for our shareholders, providing them a substantial, certain cash value at an attractive premium," American Express Global Business Travel Chief Executive Paul Abbott said in a statement.
The transaction, which requires approval from American Express Global Business Travel's shareholders and clearance from regulators, is expected to complete in the second half. Entities collectively owning 69% of the company's stock, including American Express (AXP), Expedia (EXPE) and BlackRock (BLK), have agreed to vote in favor of the deal.
Following completion, American Express Global Business Travel's shares will no long trade publicly.
"The future of business travel will be defined by (artificial intelligence) and human agents working seamlessly together on behalf of every traveler," according to Long Lake CEO Alex Taubman. "In partnership with Long Lake, Amex GBT will continue to invest heavily in these capabilities."
Long Lake intends to finance the acquisition through a combination of equity provided by its existing investors and committed debt financing.
Separately, American Express Global Business Travel reported first-quarter net income of $0.10 per share, down from $0.16 the year before. Revenue climbed 35% to $840 million, while four analysts polled by FactSet expected $816 million.
The company said it's suspending its financial guidance due to the proposed acquisition by Long Lake.
Price: $9.38, Change: $+3.45, Percent Change: +58.09%