American Express to Acquire Kabbage
August 17 2020 - 11:30AM
Business Wire
Acquisition Will Expand American Express’
Digital Cash Flow Management Offerings for Small Businesses
American Express (NYSE: AXP) today announced that it has
entered into an agreement to acquire substantially all of Kabbage,
a leading financial technology company providing cash flow
management solutions to small businesses in the U.S. The
transaction represents an important step toward American Express’
goal of being an essential partner to small businesses through a
broad range of payment, cash flow and financial management
tools.
Under the terms of the agreement, 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.
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.
“For several years, American Express has been expanding beyond
our industry-leading commercial card products to offer our business
customers a growing set of payment and working capital solutions,”
said Anna Marrs, President of Global Commercial Services at
American Express. “This acquisition accelerates our plans to offer
U.S. small businesses an easy and efficient way to manage their
payments and cash flow digitally in one place, which is more
critical than ever in today’s environment. By bringing together
Kabbage’s innovative technology and talented team with our broad
distribution capabilities and over 60 years of experience backing
small businesses, we can better help our customers successfully
emerge from this challenging period and beyond.”
“At Kabbage, we have always made the success of America’s small
businesses our primary objective,” said Kabbage CEO and co-founder,
Rob Frohwein. “We have built a technology and data platform that
provides them with the kind of capabilities and insights often
reserved for larger businesses. By joining American Express, we can
help more small businesses succeed with a fully digital suite of
financial products to help them run and grow their companies.”
The acquisition is expected to close later this year, subject to
customary closing conditions. Kabbage’s pre-existing loan portfolio
is not included in the purchase agreement.
ABOUT AMERICAN EXPRESS
American Express is a globally integrated payments company,
providing customers with access to products, insights, and
experiences that enrich lives and build business success. Learn
more at americanexpress.com and connect with us on
facebook.com/americanexpress, instagram.com/americanexpress,
linkedin.com/company/american-express, twitter.com/americanexpress,
and youtube.com/americanexpress.
Key links to products, services and corporate responsibility
information: charge and credit cards, business credit cards, travel
services, gift cards, prepaid cards, merchant services, Accertify,
InAuth, corporate card, business travel, and corporate
responsibility.
ABOUT Kabbage
Kabbage, Inc., headquartered in Atlanta, is a data and
technology company providing small business cash flow solutions.
Its suite of products includes Kabbage CheckingTM, providing small
businesses a new way to bank; Kabbage PaymentsTM, helping small
businesses get paid and access the money they earn faster; Kabbage
InsightsTM, calculating small businesses’ real-time cash flow; and
Kabbage FundingTM providing access to flexible lines of credit up
to $250,000 in minutes. Kabbage is a 2020 CNBC Disruptor 50 and is
funded and backed by leading investors, including the SoftBank
Vision Fund, BlueRun Ventures, Thomvest Ventures, and others. For
complete product details and disclosures, please visit
www.kabbage.com.
Information Related to Forward-Looking Statements
This release includes forward-looking statements that reflect
management’s expectations about future events, including
expectations regarding the transaction. These forward-looking
statements are subject to risks and uncertainties. The words
“expect,” “aim,” “plan,” “will,” “may,” “should,” “could,” “would,”
and similar expressions are intended to identify forward-looking
statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
on which they are made. American Express undertakes no obligation
to update or revise any forward-looking statements. Factors that
could cause actual results to differ materially from these
forward-looking statements include, but are not limited to, the
parties’ ability to satisfy the closing conditions and consummate
the transaction, the underlying assumptions related to the
transaction proving to be inaccurate or unrealized, and the
company’s ability to integrate Kabbage and leverage its
capabilities. A further description of these and other risks and
uncertainties can be found in American Express’ Annual Report on
Form 10-K for the year ended December 31, 2019 and its other
reports filed with the SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20200817005350/en/
AMERICAN EXPRESS Felicia Mowll 212-640-1709
Felicia.A.Mowll@aexp.com
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