EXCLUSIVE INTERVIEW
WORDS MAT THEW PARSONS
‘IT’S A FAIRLY BIG DEAL’ I
Amex GBT boss Doug Anderson says ‘we’re in a good place’ since the HRG deal completed – but now the hard work really begins
T’S BEEN THIS YEAR’S most talked about deal. And it’s been “all consuming”, says Doug Anderson, chief executive of American Express Global Business Travel (Amex GBT), who now finds himself in charge of a £2 billion-plus TMC.
There was a media blackout following the announcement in Feb- ruary this year that Amex GBT planned to acquire HRG, but EU merger control clearance finally arrived on 19 July. I begin by asking if there were any hurdles. “These things are com- plicated, they always take time. If you’re referring to the three-week delay, we misunderstood the time it would take for [EU] regulatory approval,” Anderson tells me. “But both organisations, I believe, are delighted with the deal. We’re in a good place.” The first announcement, issued 9 February, referenced how “com- plementary geographical footprints of each company will improve the global scale”, as well as “technology roadmaps of each business provid- ing a powerful platform from which to drive future innovation”. Post-deal, does Anderson’s vision remain true? “There were no surprises,” he says, adding HRG’s European reach will benefit Amex GBT. Technology was also seen as a motivator, and Anderson says HRG’s “strong client-facing and operating technology” will fit in. Another question surrounds how travel buyer clients of both brands will feel being served by a new and much bigger TMC. “We will deliver an enhanced service,” he says. “I don’t want to lose clients, we don’t want to lose clients. I’d understand any concern, but we’ll
work hard to maintain their trust and confidence.” STRONG PEOPLE
Anderson is also keen to emphasise how the acquisition brings “strong people” into the Amex GBT fold. However, the original filing cited “overall potential job reduction of between 6 and 8 per cent of the total combined group”. In terms of cuts, “it’s too early to say”, Anderson admits. “We were required in the 2.7 [regulatory announcement filing] to put in an estimate. Both organisations have strong results, we’re looking for cost savings, but we’re not far enough in to know where they’ll come from.” Branding is another unknown. In the short term, HRG stays,
WE’RE FOCUSING
ON A ‘BEST OF BOTH’ PRINCIPLE
albeit with the tagline “An American Express Global Business Travel company”. “We’ll consider the brand during the integration,” he adds. With the deal complete, Amex GBT has access to HRG’s client data. This was off the books during the negotiations, as HRG was a publicly listed company. So how big is the new-look Amex GBT’s client base? “I honestly don’t know,” Anderson concedes. “We’ve not had access to commercially sensitive information. But in terms of revenue, we’re bringing together two of the top four TMCs.” With the pieces of the puzzle almost in place, there’s a new-look leadership team: Joanna Macleod, currently Amex GBT’s executive vice-president, traveler care, moves to chief transformation officer, while Bill Brindle, HRG’s chief operating officer, has been appointed Amex GBT’s chief operating officer. For now, the emphasis is on bringing together two household names. “We’re focusing on a ‘best of both’ principle,” Anderson says, adding what could be this year’s understatement of the year: “It’s a fairly big deal.”
48 SEPTEMBER/OCTOBER 2018
buyingbusinesstravel.com
PROFILE Doug Anderson joined
Amex GBT as chief executive in August 2016. He was previously chief executive and president of CWT after serving as chief financial officer. Prior roles have included finance director at Eastman Kodak Group, CFO at SITA, and CFO for UPS Logistics Group. He lives in London with his family.
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