Brex co-founders Pedro Franceschi and Enrique Dubugras;
brex
Capital One announced Thursday that it will acquire payments startup Brex for $5.15 billion, the latest splashy deal made by CEO Richard Fairbank.
The company, which disclosed the deal in its fourth quarter results, said it would pay 50% cash and 50% stock for Brex.
The bank’s stock price fell about 3%.
Under Mr. Fairbank, a rare founder and CEO of a major U.S. bank, Capital One last year acquired rival card company Discover Financial for about $35 billion. The deal was Fairbank’s crowning achievement, giving credit card lenders of all sizes access to a single payment network.
“Since our founding, we have been committed to building a payments company at the forefront of the technology revolution,” Fairbank said in a release. “The acquisition of Brex accelerates this effort, especially in the business payments market.”
Fairbank said Brex pioneered the combination of corporate card, banking and spend management software. “They took the most unusual path for a fintech and built a platform that is vertically integrated from the bottom of the technology stack to the top.”
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