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FT Partners Advises Kabbage on its Sale to American Express

Overview of Transaction

  • On August 17, 2020, American Express announced that it has signed a definitive agreement to acquire Kabbage
  • Kabbage empowers small businesses through straightforward, flexible access to capital
  • Since inception, the Company extended more than $16 billion directly to small business owners and powered automated funding for other organizations all over the globe
  • Kabbage approved a landmark number of applications in the Paycheck Protection Program, demonstrating the true power, scale and reach of its technology platform
  • Over the three-month period of the program, Kabbage approved nearly 300,000 small businesses for ~$7 billion, making it the second-largest PPP lender in the country by application volume, outperforming some of America’s largest banks
  • American Express will acquire Kabbage’s team and its full suite of financial technology products, data platform and IP built for small businesses

Significance of Transaction

  • The combination of Kabbage’s and American Express’ platforms can help small businesses succeed with a fully digital suite of financial products to helps them run and grow their companies
  • This acquisition accelerates American Express’ plans to expand beyond its industry-leading commercial card products to offer business customers a growing set of payments and working capital solutions

FT Partners' Role

  • FT Partners served as exclusive financial and strategic advisor to Kabbage
  • FT Partners previously advised Kabbage on its $135 million Series E financing
  • This transaction highlights FT Partners’ deep domain expertise in the Banking Technology and Alternative Lending sectors, as well as our successful track record generating highly favorable outcomes for high-growth FinTech companies globally