By Colin Kellaher

American Express Co. on Monday said it agreed to buy substantially all of online small-business lending platform Kabbage Inc. for an undisclosed amount.

The New York financial-services company said the deal expands its digital cash-flow-management offerings for small businesses.

Barron's earlier this month reported that Kabbage was weighing a sale, and that a person familiar with the matter said the fintech startup could sell for $750 million to $1 billion.

American Express said it will acquire Kabbage's team and its suite of financial-technology products, data platform and IP built for small businesses. The Atlanta firm's pre-existing loan portfolio isn't included in the agreement.

American Express said it expects to complete the acquisition later this year.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

August 17, 2020 12:10 ET (16:10 GMT)

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