Massive consolidation alert: Hogg Robinson has sold to American Express Global Business Travel in a deal in the region of £400 million.
The acquisition is expected to complete in the second quarter of 2018 and will, subject to closing share prices, come in at somewhere between £376 million and £410 million.
Amex says the deal will allow it to combine two "advanced travel technology and development platforms" in a bid to create more products and services to the pair's corporate customers.
In a statement, Amex says it will also look at leveraging each company’s "existing infrastructure and technology capabilities to maximise efficiencies across the business".
The deal comes the same day as HRG says it plans to sell its Fraedom payments software business to Visa, in a deal worth £141 million.
Amex GBT CEO Doug Anderson says: "The technology roadmaps of each business provide a powerful platform from which to drive future innovation. We will deliver a superior client and traveller experience through fully-integrated travel management solutions, including booking and expense management products."
The corporate travel division is part of the wider HRG empire, with 14,000 employees in 120 countries worldwide, which has its foundations stretching back to 1845.
The company's most recent financial results saw it post revenues of £161.9 million for the six months ending September 2017, down 5% on a constant exchange rate metric.
At the time, both HRG and Fraedom were part of a "significant growth" strategy over the medium term. The payments and transaction service had been a customer of Visa for almost ten years.
HRG gained Level 3 Certification for IATA's New Distribution Capability in November 2017.
The acquisition marks a reasonable shift in the power base of the major corporate travel management companies.
Other leading players include BCD Travel and Carlson Wagonlit, with Expedia Inc putting a significant amount effort and resources into its Egencia business travel unit.
HRG boss David Radcliffe says he is "excited and heartened" by assurances from the new owner that it will be using the best talent and technology from within both organisations to create a "truly world-class, leading-edge organisation".
Fraedom was bought in 2012 and rebranded from its original Spendvision title in 2015.
Managing Corporate Travel in Today’s Complex Environment