AmEx Global Business Travel has approved a $ 5.3bn partnership with Apollo-backed Spac

American Express Global Business Travel has announced that it will go public in partnership with a free New York-based check-in company sponsored by Apollo Global Management for betting recovery after a business crisis.

The company’s travel agency made the agreement in 2014 with American Express, which saves 50 percent. Following the merger with Apollo Strategic Growth, a private equity firm, AmEx Global Business Travel (GBT) will be named Global Business Travel Group and listed on the New York Stock Exchange.

The alliance is expected to repay $ 1.2bn, which is approximately $ 817m of Apollo Strategic Growth invested with $ 335m through a private enterprise in Public Equity (Pipe), and give the pro market for $ 5.3bn. .

Supporting the Pipe section will be a new investment plus Zoom; travel technology company Saber; the secret societies of Apollo and Ares Management; and financial advisor HG Vora. They will connect with American Express affiliates; online hosting company Expedia; and the Certares real estate company, which has recently helped lead a car rental team Hertz on bankruptcy.

The contributions of these new vendors were a “great trust” for the company, the future of business travel and opportunities in the sector, Paul Abbott, head of GBT, told FT.

The $ 1.4tn travel business was hit hard during the epidemic, and it has been slower to recover than the rest of the travelers. Carlyle Group’s corporate plan is a Singapore fund to take a 20 percent stake in AmEx Global Business Travel, which would be worth the company about $ 5bn, fall in May 2020.

GBT, which has $ 39bn in travel sales, is the largest player in the travel industry and 40 percent larger than its nearest competitor, which provides “a great way to grow”, Abbott said Friday.

The company is setting its financial projections on business travel to 70 percent of its epidemic by the end of 2023. That doesn’t mean he was optimistic about the outcome, Abbott said, but instead sought to reduce some of the risk. optimistic predictions and “making down for investors” give you confidence in the possibilities.

The recurrence of Covid-19 cases in Europe and the US starting the winter in the north of the world has brought a recent threat to business recovery. Several governments have tightened restrictions on immigrants due to the availability of the new most versatile Omicron version.

“I think we are seeing a more sophisticated and effective way of” restricting travel with governments, “Abbott said, adding that he did not think it” changed the mindset of investors in the business environment by the end of 2023 or 2024 “.