American Express completes Kabbage acquisition American Express says it has entered into an agreement to acquire substantially all of Kabbage, a financial technology company providing cash flow management solutions to small businesses in the US. It looks as though American Express could soon be expanding its small business portfolio by purchasing a top FinTech lender. Through the acquisition, American Express said that it will look to offer a larger set of cash flow management tools and working capital products to its small business customers in the US. American Express is reportedly in advanced discussions to acquire Kabbage, the online small-business lender that went up for sale earlier this month. The transaction represents an important step toward American Express’ goal Acquisition Will Expand American Express’ Digital Cash Flow Management Offerings for Small Businesses NEW YORK -(BUSINESS WIRE)- 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 great fintech consolidation of 2020 continues. Kabbage continued to innovate within lending, too. Kabbage's tools and technology can help widen American Express's footprint in the small-business market, she said. The Kabbage acquisition is the latest step by American Express in its goal of becoming an essential partner to small businesses. This strategy involves the integration of a broad range of payment, cash flow and financial management tools within the Amex network. Financial details about the acquisition of the SoftBank-backed firm were not disclosed. That includes checking. What Does the Future Hold for Digital Banking? Terms of the deal were not disclosed. Kabbage’s pre-existing loan portfolio is not included in the purchase agreement. Kabbage’s pre-existing loan portfolio is not included in the purchase agreement. Kabbage made a host of loans under the Paycheck Protection Program in recent months. Kabbage, which is backed by SoftBank and other investors, was most recently valued at more than $1 billion after a 2017 equity infusion. Kabbage is the developer of a small-business lending platform that has raised nearly $500 million in venture backing from the likes of BlueRun Ventures, SoftBank and Reverence Capital Partners, according to PitchBook data. What the company eyes now is being essential, Taylor Cotter said. Read on for details from the announcement and analysis from Moody’s Analytics. Tech Crunch reports:. American Express will acquire US lending platform Kabbage as it hunts for SME action in payments, and cash flow and financial management tools. Terms of the deal were not disclosed. Specific deal terms were not revealed but an earlier report by Bloomberg set the purchase price as an all-cash deal worth $850 million. It bought the technologies, not the loan books. The acquisition would include Kabbage’s full team and nearly all of its suite of products. American Express Agrees to Buy Online Lender Kabbage AmEx's purchase price for Kabbage wasn't revealed but Bloomberg reported last week that it might total $850 million. As per the agreement terms, American Express will acquire Kabbage’s team and its complete suite of financial technology products, data platform, and IP developed for small businesses. The size of the deal has not been disclosed but a Bloomberg report has indicated the acquisition could cost as much as $850 million. American Express announced that it has officially closed on the acquisition of Kabbage. AXP. The transaction represents an important step toward American Express’ goal New York City-based American Express … However, although banks saw unprecedented demand from the start of PPP, fintechs were left largely on the sidelines in the program's initial days as the SBA wrote and rewrote guidance on eligibility, giving some nonbank lenders a case of white knuckles. Goodwin Procter LLP advised Kabbage on the deal. Kabbage is being acquired by American Express for an undisclosed sum, although last week the rumor was that it would be “up to $850 million.”. Previous speculation about the deal priced it as high as $850 million. Key Points. Barron’s reportedlast week Kabbage was considering a sale worth between $750 million and $1 billion. AXP. Expanding its reaching into the fintech space, American Express announced plans to acquire Kabbage. Amex's acquisition, tellingly, will include employees, technology and financial data, but “Kabbage’s pre-existing loan portfolio is not included in the purchase agreement," Amex noted in … Terms of the deal were not disclosed. Dan Ennis Speculation on the deal in recent days has put the purchase price between $850 million and $1 billion. In one of its longer-running, better-publicized business goals — regarding card acceptance — it chased its competitors before signaling this year that it had caught up. And 97% of its PPP borrowers were new customers, the company said in July. American Express Company(NYSE: AXP) is in talks with Kabbage, an online fintech lender backed by Softbank(OTC: SFTBY), over an $850 million acquisition, according to Bloomberg. 850 million undertook a body of work [ with the end goal of becoming an essential partner to Businesses. Ranked No payment, cash flow and financial management tools but an earlier report by Bloomberg the... 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