Payment services firm American Express has agreed to buy US-based online airport lounge booking platform LoungeBuddy, which is backed by travel and expense management software producer Concur, for an undisclosed amount.
Founded in 2015, LoungeBuddy has developed a website and mobile app that is used by travellers to find, book and gain access yo airport lounges without requiring membership or a first-class ticket.
The platform allows users to compare benefits of different airport lounge offers, as well as viewing or providing reviews of each facility.
American Express initially partnered LoungeBuddy in 2017 to provide information on more than 1,200 lounges to its premium card members, and the latter will become a wholly-owned subsidiary of American Express once the deal closes.
Chris Cracchiolo, senior vice-president of global loyalty and benefits for American Express, said: “The expansive airport lounge access we offer our premium card members through the Global Lounge Collection is among the most popular travel benefits we offer, which is why we continue to invest in enhancing the lounge access and services we provide.
“With the acquisition of LoungeBuddy, we will be able to leverage its cutting-edge platform to develop additional ways to become an essential part of our card members’ digital lives.”
LoungBuddy completed a $3m series A round led by Founders Fund in 2015 that valued the company at $18m, increasing its overall funding to $4m according to Reuters, and the company described Concur as an existing investor on its website.