As part of its agreement to sell corporate-travel division Egencia to American Express Global Business Travel (GBT), Expedia Group would take a 14% ownership in GBT, with an approximate value of $750 million.

Expedia disclosed that detail during its first quarter financial earnings call Thursday. In addition, CFO Eric Hart said Expedia's 10-year lodging-supply agreement with GBT would generate in excess of $60 million in earnings before interest, taxes, depreciation and amortization, based on 2019 volumes.

Hart said he expected the deal to close, pending regulatory approval, in 9 to 12 months.

Expedia CEO Peter Kern called the deal "extremely exciting to us."

"It really highlights three core things we're trying to do," Kern added.

First, he said, Expedia is attempting to find the best opportunities for all of its businesses. Egencia in GBT's hands represents a new corporate enterprise to focus on that particular customer.

Second, he pointed to the long-term lodging supply and technology agreement Expedia plans to enter with GBT, which is in alignment with Expedia's efforts to grow its B2B efforts in the travel industry, important to its long-term strategy.

Finally, Kern said, Expedia has been on a mission to simplify its company, and GBT's acquisition of Egencia will help it focus more on its core B2B and B2C businesses.


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