American Express is buying Kabbage
American Express announced on Monday that it's buying small business lender Kabbage for an undisclosed price. Barron's previously reported that Kabbage was looking to sell for $750 million to $1 billion.
AmEx, which has been increasingly focused on corporate credit cards for some time now, said it wants to use Kabbage's products to improve its SMB offering.
The deal is the latest in a string of big fintech transactions, following Visa's Plaid purchase and Intuit's Credit Karma acquisition. But for Kabbage, the sale seems to be an anticlimax: When SoftBank invested $250 million in 2017, it valued Kabbage at more than $1.25 billion. Turns out $6 billion in PPP loans isn't worth all that much.
Correction: This story has been updated to correctly reflect that Visa bought Plaid.