[DigitalToday reporter Chi-gyu Hwang (황치규)] Brex, which once took direct aim at American Express by even naming its in-house Wi-Fi “BuyAmex,” has been acquired by U.S. bank Capital One for $5.15 billion.
The Information reported recently that Brex, which in 2022 touted a valuation of $12.3 billion and was also seen as a promising IPO candidate, appears to have chosen a sale as a practical option over a listing after its growth slowed amid a tighter venture investment market.
In September last year, Brex posted annualised revenue of more than $700 million, up 45% from a year earlier, but its profit structure remained in the red.
Capital One, by contrast, posted net profit of $2.1 billion in the fourth quarter alone last year.
Earlier, Capital One acquired credit card company Discover for $35.3 billion last year. Compared with Discover, Brex is about 3.5% of Capital One’s overall market value.
The Information also described the deal as a “small but meaningful” move aimed at expanding technological capabilities and the corporate customer base.
Chi-gyu Hwang
delight@d-today.co.kr