The great fintech consolidation of 2020 continues… Kabbage is being acquired by American Express for an undisclosed sum, although last week the rumor was that it would be “up to $850 million.”
Kabbage has expanded beyond lending in recent years with the launch of Kabbage Payments, Kabbage Insights and just last month Kabbage Checking. They now have a chance to integrate these offerings into the vast Amex empire.
… according to the press release AmEx will acquire the technology, people and data of Kabbage, but not its loan book. Given the state of small business today and the uncertainty over the potential outcome of the loans AmEx is taking that potential downside risk off the table.
… What is most exciting is what they might do with the vast treasure troves of data inside AmEx and the data science team at Kabbage. It is certainly a win for small business owners…