BY Fraser Tennant
In an acquisition that will build on its already-strong position in the business payments marketplace, US bank holding company Capital One Financial is to acquire fintech firm Brex for $5.15bn.
Under the terms of the definitive agreement, Brex will be acquired by Capital One in a combination of stock and cash, with completion expected in the middle of 2026, subject to the satisfaction of customary closing conditions.
The transaction reflects continued consolidation across the fintech industry, where shifting market conditions and tighter funding have forced many companies to reconsider long-term strategies.
A modern, artificial intelligence (AI)-native software platform offering intelligent finance solutions that make it easy for businesses to issue corporate cards, automate expense management and make secure, real-time payments, Brex also leverages AI agents to help customers automate complex workflows to reduce manual review and control spend.
Over 25,000 of the world’s best companies – from start-ups to enterprises – run their finances on Brex, including DoorDash, TikTok, Anthropic, Robinhood, Crowdstrike, Zoom, Plaid, Intel, SeatGeek and the Boston Celtics.
“Since our founding, we set out to build a payments company at the frontier of the technology revolution,” said Richard D. Fairbank, founder, chairman and chief executive of Capital One. “Acquiring Brex accelerates this journey, especially in the business payments marketplace.”
“Brex invented the integrated combination of corporate credit cards, spend management software and banking together in a single platform,” he continued. “They have taken the rarest of journeys for a fintech, building a vertically integrated platform from the bottom of the tech stack to the top.”
The deal to buy Brex comes eight months after Capital One completed its $35bn acquisition of payments network Discover.
“We started Brex in 2017 as a category creator – bringing together financial services and software into one AI-native platform,” said Pedro Franceschi, founder and chief executive of Brex. “By combining Brex’s payments expertise and spend management software with Capital One’s massive scale, sophisticated underwriting and compelling brand, we can accelerate growth and increase the speed at which we can offer better finance solutions to the millions of businesses in the US mainstream economy.”
Upon completion of the transaction, Mr Franceschi will continue to lead Brex as part of Capital One.
Mr Franceschi concluded: “In partnership with Capital One, we will maximise founder mode and supercharge our next chapter.”
News: Capital One strikes $5.15 billion Brex deal, quarterly profit rises on interest income boost