Dive Brief:

• American Express said it plans to divest its 30% ownership stake in the corporate travel services company Global Business Travel Group, reaping $1.5 billion from the sale, according to a Monday statement.
• Amex said it will shed its stake as part of an agreement to sell the travel services business for $6.3 billion to the technology investment firm Long Lake Management, which is backed by the venture capital firm General Catalyst and alternative asset management firm Alpha Wave.
• In its short statement on the deal, Amex said the sale doesn’t change its “current brand licensing and commercial agreements,” with Global Business Travel Group. Other GBTG owners, including the online travel firm Expedia, Qatar’s investment arm and the global investment firm BlackRock, also agreed to the transaction, the release said.

Dive Insight:

New York-based Amex has long made travel services for its customers a key part of its offering. It has been in the business of travel for more than 100 years, first selling tickets for travel by rail and steamship in 1915, according to the company’s website.

In 2014, Amex created a joint venture and sold half of the Global Business Travel Group to an investment group led by Certares, including Qatar and BlackRock, according to a filing with the Securities and Exchange Commission then. At that time, the investors paid $900 million to acquire ownership of half of the venture.

Amex will remain in the travel business with ownership of a major leisure travel agency business, a spokesperson for the company said Monday in commenting on the transaction, which is expected to close by the end of the year.

The spokesperson underscored the difference between the GBTG unit being sold and the leisure travel business the company is retaining. 

“American Express’s strategy in corporate travel is centered on its core strengths across corporate cards, payments, and expense management, including continued investment in capabilities for businesses of all sizes,” the spokesperson said by email. “GBTG is a separate company focused on business travel, and this transaction does not change American Express’s approach.”

In keeping with the sale to private investors, Global Business Travel Group will no longer be a publicly-traded company.