NEW YORK––American Express is reportedly in discussions to purchase Kabbage, Inc., one of the largest online business owners.
While American Express is the nation’s largest provider of credit cards to small businesses in the U.S., the purchase of Kabbage would also make it the largest issuer of loans to those same small businesses, according to Bloomberg. Kabbage offers businesses lines of credit up to $250,000.
Kabbage is currently owned by SoftBank Group Corp. and Reverance Capital Partners and should the deal close it would value the company at approximately $850 million.
Bloomberg noted that AmEx had a profitable second quarter, but its revenue decreased sharply as a result of significant cutbacks in consumer spending as a result of the coronavirus pandemic.
Atlanta-based Kabbage was founded in 2011.