Capital One Acquires Brex: A $5 Billion Bargain Or Mistake?
- On Thursday, Capital One announced it is acquiring Brex for $5.15 billion, disclosed in its fourth-quarter earnings, with the deal split 50% cash and 50% stock and expected to close in the second quarter.
- Capital One gains Brex's technology platform and client roster, reportedly including TikTok, Robinhood and Intel, plus $13 billion in deposits and an EU license enabling issuance in all 30 EU countries.
- Brex's funding history shows the sale price at $5.15 billion is less than half its $12.3 billion valuation, with later-stage investors like TCV and GIC facing a valuation haircut.
- The deal delivers liquidity for investors and early backers, while Capital One shares fell about 3% after Thursday, Pedro Franceschi told CNBC, `We didn't have to pursue this acquisition, our growth was incredibly strong`.
- The purchase positions Capital One to enter European corporate banking via Brex's reach in all 30 EU countries, while rivals Ramp and Mercury, with $650 million ARR, face altered competition.
52 Articles
52 Articles
Brazilian-Founded Brex Sells to Capital One for $5.15 Billion, Stock Falls 6%
Key Points Capital One agreed to buy Brex for $5.15 billion, about 50% cash and 50% stock, to expand its business-card platform. Shares fell about 6% after a Q4 earnings miss and renewed focus on credit costs and expense growth. The deal reflects fintech’s reset: strategic buyers, deposits that matter, and exit prices below the […]
Capital One to Acquire Brex in $5 Billion Deal
Capital One Financial Corporation, a technology-based financial services firm, announced plans to acquire Brex, an AI-native software platform, in a $5.15 billion stock and cash transaction deal. “Since our founding, we set out to build a payments company at the frontier of the technology revolution,” Richard D. Fairbank, Capital One founder, chairman, and CEO, said in a Jan. 22 statement. “Acquiring Brex accelerates this journey, especially in …
Capital One buys Brex for $5.15B, ending the Fintech’s IPO dreams - Tech Startups
Capital One Financial agreed to acquire fintech startup Brex for $5.15 billion in a mix of cash and stock, drawing the curtain on a company that once talked openly about taking on American Express. The deal landed with a thud […] The post Capital One buys Brex for $5.15B, ending the Fintech’s IPO dreams first appeared on Tech Startups.
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