Monday, November, 30, 2020 02:21:22

American financial services corporation, American Express, has reportedly announced that it has acquired the key assets of Georgia-based online financial technology company, Kabbage. As per the agreement, Kabbage’s team will come under American Express, which will take the official ownership of Kabbage’s intellectual property, data platform, and fintech products.

According to Anna Mars, American Express’ President of Global Commercial Services, the acquisition speeds up the company’s plans for providing U.S. small businesses with an easy and efficient method to digitally manage their payments and cash flow at one place. She has further stated that the integration of Kabbage’s talented team and innovative technology with American Express’ broad distribution capabilities will allow the company to better help clients to successfully go through this challenging period and beyond.

For the uninitiated, Kabbage was founded in 2009 as an online small business lender and specializes in the provision of a broad range of financial services for small businesses, comprising tools for cash flow visualization, online bill payment, business checking, and flexible credit. The previous year, Kabbage acquired Radius Intelligence, an entity resolution space and data acquisition platform furnishing SMBs with the ability to unify diversified data sets into a single record for analysis. The company was reportedly merged into Kabbage for bolstering its own services for cash flow management.

Of late, American Express has planned to offer a wide range of working capital products and cash flow management tools to small business customers in the U.S., state sources, adding that the deal does not comprise Kabbage’s loan portfolio.

As per sources, American Express, also called Amex, is an American multinational financial services corporation based in New York City. The company was founded in 1850 by William Fargo, Henry Wells, and John Butterfield, and is one of the 30 components of the Dow Jones Industrial Average. Subsidiaries of American Express comprise American Express International Inc, Travel Impressions Ltd, American Express Publishing Corporation, and others.

 

Source Credits:

https://www.zdnet.com/article/american-express-acquires-fintech-company-kabbage/