American Express (AXP) on Monday announced that it would spin off its business travel division, which is being bought by an investor group.
American Express said the proceeds from the sale will go toward “growth initiatives.”
“To our knowledge, this would be the largest single investment made in a travel management company,” said Bill Glenn, who will be CEO of the joint venture, in a statement. “We believe it will accelerate our growth by funding meaningful advances in technology, analytics and service excellence that will benefit suppliers, partners and our global customer base.
We account for more corporate travel sales than any other TMC, and these initiatives will put us in a better position to help travel buyers manage travel spend and support their travelers.”
AXP stock is up nearly 1% since the announcement.
The sale had been widely expected after American Express announced its intentions in September 2013.
American Express noted that its business travel division deals with travel consulting, services and research.
The Global Business Travel division is separate from consumer travel services.
AXP stock is up .8% year to date.
More Spinoff News