American Express (NYSE: AXP) is to acquire Kabbage, an Atlanta, GA-based financial technology company providing cash flow management solutions to small businesses in the U.S.
The amount of the deal was not disclosed.
The acquisition is expected to close later this year, subject to customary closing conditions.
Under the terms of the deal, American Express will acquire Kabbage’s team and its full suite of financial technology products, data platform and IP built for small businesses. Kabbage’s products include access to flexible lines of credit, online bill payment, cash flow visualization tools, e-gift certificates, and the ability to centralize funds through the company’s recently launched business checking account. This product suite is integrated into a single online platform that uses real-time data processing to help small businesses better understand, forecast and manage their cash flow. Kabbage’s pre-existing loan portfolio is not included in the purchase agreement.
With the addition of Kabbage’s technology, products and people, American Express plans to offer a broader set of cash flow management tools and working capital products to its millions of small business customers in the U.S.
Led by CEO and co-founder Rob Frohwein, Kabbage is funded and backed by SoftBank Vision Fund, BlueRun Ventures, Thomvest Ventures, and others.
FinSMEs
17/08/2020