American Express has reached an agreement to buy Kabbage, which offers cash flow management solutions to small businesses in the US.
The transaction is part of American Express’strategy to offer a wider range of payment, cash flow and financial management tools to small businesses.
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Under the terms of the agreement, the firm will acquire Kabbage’s team and its financial technology products, data platform, and IP designed for small businesses.
Kabbage offers access to flexible lines of credit, online bill payment, cash flow visualisation tools, e-gift certificates, and the ability to centralise funds through its business checking account.
The company’s product suite is integrated into a single online platform, which uses real-time data processing, to help small businesses better understand, forecast and manage their cash flow.
American Express president of global commercial services Anna Marrs said: “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.
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By GlobalData“This acquisition accelerates our plans to offer US 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.”
Kabbage’s pre-existing loan portfolio is not included in the purchase agreement. The acquisition, subject to customary closing conditions, is expected to close later this year.
Kabbage CEO and co-founder Rob Frohwein said: “At Kabbage, we have always made the success of America’s small businesses our primary objective.
“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.”
