By Colin Kellaher
American Express Co. on Monday said it agreed to buy substantially all of online small-business lending platform Kabbage Inc. for an undisclosed amount.
The New York financial-services company said the deal expands its digital cash-flow-management offerings for small businesses.
Barron's earlier this month reported that Kabbage was weighing a sale, and that a person familiar with the matter said the fintech startup could sell for $750 million to $1 billion.
American Express said it will acquire Kabbage's team and its suite of financial-technology products, data platform and IP built for small businesses. The Atlanta firm's pre-existing loan portfolio isn't included in the agreement.
American Express said it expects to complete the acquisition later this year.
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