American Express Global Business Travel (Amex GBT), a leading software and services provider for travel, expense, and meetings & events, has announced that the United States Department of Justice (DOJ) has dismissed its complaint challenging Amex GBT’s acquisition of CWT, a global business travel and meetings solutions provider.

This dismissal paves the way for the acquisition to proceed, with closing now anticipated in the third quarter of the year, subject to the satisfaction of remaining closing conditions. The transaction is valued at $540 million, comprising approximately 50 million shares issued at a fixed price of $7.50 per share, with the remaining consideration funded by cash on hand. Upon completion, CWT shareholders are expected to own approximately 10% of the combined entity.

Paul Abbott, CEO of Amex GBT, acknowledged the impact of the regulatory process. “We recognize the regulatory approval process has created uncertainty for CWT customers and employees. We’re excited to close the transaction and welcome them to Amex GBT. Together, we will offer customers unrivalled choice, value, and experience,” Abbott stated. The company anticipates approximately $155 million in identified net synergies from the acquisition, which is expected to be highly accretive.

Patrick Andersen, CEO of CWT, also commented on the development, stating, “Our customers and people have an exciting future ahead of them as we turn our focus to completing the transaction and integrating with Amex GBT. Together we can provide a tech-enabled future for business travel, where people and technology combine to deliver an exceptional customer experience.”