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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.
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Forbes broke the news in United States on Thursday, January 22, 2026.
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