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American Express on Monday announced an agreement to acquire online small-business lender Kabbage for an undisclosed amount.
Why it matters: Kabbage is one of the fintech companies that helped small businesses tap into the Paycheck Protection Program despite furloughing hundreds of workers at the beginning of the pandemic.
- Bloomberg first reported on the deal talks last week, suggesting that Amex may pay $850 million in cash, inclusive of possible employee retention bonuses.
- Kabbage had raised nearly $1 billion in venture capital funding since 2009, from firms like SoftBank, Thomvest Ventures, BlueRun Ventures, and Reverence Capital Partners.