New York-based American Express announced this week that it is purchasing Kabbage, a payments, cash-flow management and financing fintech that serves small- and medium-sized businesses.
American Express framed its acquisition, which includes all of Kabbage’s intellectual property and products, in terms of expanding its services to the small- and medium-sized business (SMB) segment in an announcement released on Monday.
“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 in released comments. “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.”
The acquisition is slated to close later this year, according to American Express. Additional details of the transaction were not disclosed.