American Express said on Monday that it had sold half of its business travel unit to a group of investors that includes the government of Qatar and the money management giant BlackRock for $900 million.
The deal completes an effort begun last year by American Express to trim its exposure to corporate travel, a business that has declined amid cost-cutting efforts around the country. Instead of relying on agencies, corporate employees are increasingly being asked to make their own arrangements.
That trend has hit the company hard. Last year, it announced plans to lay off 5,400 employees in the travel business.
Under the terms of the deal announced on Monday, American Express will sell half of the division to the consortium led by Certares, an investment firm led by a former executive at JPMorgan Chase. Its partners include the Qatar Investment Authority, BlackRock and Macquarie Capital.
American Express’s consumer travel business is not part of the transaction.
American Express, which described the transaction as one of the biggest in the travel management sector, said that it planned to use proceeds from the deal to reinvest in its corporate travel business, including in new technology like mobile services.
“The joint venture reflects our continued commitment to the travel business through a new structure with an outstanding group of investors and the resources to grow the business and provide additional value to our corporate customers,†Kenneth I. Chenault, the company’s chairman and chief executive, said in a statement.
Bill Glenn, who led American Express’s global commercial services unit, will be chief executive of the joint venture.
American Express was advised by UBS, Lazard and the law firm Cleary Gottlieb Steen & Hamilton.
