American Express Global Business Travel (GBT) plans to acquire Hogg Robinson Group (HRG) in an all cash deal. News outlets are estimating the purchase at $550M.
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.”
American Express Global Business Travel to acquire Hogg Robinson Group
From an Amex perspective, the ROI will depend on how well they can manage the M&A and subsequent tech integrations. Both companies have made significant investments into their own technology solutions so this acquisition will be challenging from a technology position. Overlapping solutions in mobility and meetings management will have to be sorted out.
In the short term leadership will be very focused on these processes which might strain the relationship (services) with corporate buyers. I’m sure other TMCs will leverage these concerns with Corp buyers entertaining a TMC RFP for the next 18 months.
