American Express Co. (AXP) plans to acquire "substantially all" of Kabbage, a financial technology company that does small business lending. Amex announced late Monday the deal for Kabbage, which includes everything but the company's preexisting loan portfolio. Terms of the arrangement weren't disclosed in the release and an Amex spokeswoman said that the company "does not disclose details of its financial agreements." Bloomberg reported last week that Amex could pay as much as $850 million for the lending company. Per a release, Amex expects that the Kabbage deal will allow it 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." American Express shares are off 2.1% in Monday trading but they've risen 20% over the past three months as the Dow Jones Industrial Average has gained 18%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 18, 2020 11:13 ET (15:13 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.