American Express on Thursday confirmed plans to acquire TheFork, a prominent European restaurant reservation platform, in a move aimed at expanding its digital services for travelers and diners. The proposed deal, first reported by Reuters and later corroborated by Bloomberg, marks a significant step in the financial services giant’s strategy to integrate lifestyle-focused offerings with its payment ecosystem.
TheFork, which operates in over 30 countries and lists more than 80,000 restaurants, reported 2022 revenue of €145 million, according to its annual report. American Express said the acquisition would enhance its ability to provide “seamless dining experiences” for cardholders, though specific financial terms of the agreement were not disclosed. A statement from the company emphasized that the deal is subject to regulatory approvals and is expected to close in the first half of 2024.
Key Details of the Proposed Acquisition
TheFork’s CEO, Marco Freguglia, stated in a press release that the partnership would allow the platform to “leverage American Express’s global network and technological infrastructure.” The company, which has faced challenges in recent years due to shifting consumer habits and increased competition from platforms like OpenTable, has seen its stock price decline by 22% over the past 12 months, according to data from Morningstar.
American Express did not specify whether the transaction would involve an upfront cash payment, stock exchange, or a combination of both. However, industry analysts noted that TheFork’s valuation is likely to be in the range of €1.2 billion to €1.5 billion, based on similar deals in the fintech and travel sectors. A report from Goldman Sachs, cited in a recent investor briefing, estimated the company’s enterprise value at €1.3 billion as of October 2023.
Strategic Implications
The acquisition aligns with American Express’s broader push to strengthen its digital footprint. In 2022, the company acquired the travel rewards platform AirPassengers and launched an AI-driven financial planning tool for small businesses. By integrating TheFork, American Express aims to offer cardholders exclusive dining benefits, such as priority reservations and personalized recommendations, which could drive increased usage of its credit cards.
However, the deal faces potential hurdles. The European Union’s Competition Commission has already begun reviewing the transaction to assess its impact on market competition. A spokesperson for the commission said in a statement: “We are analyzing the proposed acquisition to ensure it does not create unfair advantages for any single entity in the digital dining sector.”
What Comes Next
The next critical milestone is the regulatory approval process, which could take several months. If cleared, the acquisition would mark one of the largest investments by American Express in the hospitality technology space. TheFork’s existing operations will remain under its current management, with Freguglia set to continue in his role as CEO, according to a company statement.
For now, the focus remains on the timing and conditions of the deal. Analysts at JPMorgan Chase & Co. noted in a research note that the transaction “could position American Express as a more formidable competitor in the global travel and dining market, but its success will depend on effective integration and user adoption.”
Readers seeking further updates are encouraged to monitor official statements from American Express and TheFork, as well as regulatory filings with the U.S. Securities and Exchange Commission and the European Commission. For real-time coverage, follow trusted financial news outlets such as Bloomberg and Reuters.
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