- Capital One will buy Brex for $5.15 billion in a deal set to close by mid-2026.
- The transaction will be paid half in stock and half in cash.
- Brex provides corporate credit cards and cash management accounts for tech firms.
- The announcement first drove a sharp drop in Capital One shares, but investor confidence recovered after a strong earnings report.
- Capital One cited the deal as a way to expand business payments and lessen reliance on consumer credit.
On Thursday, Capital One announced it will acquire Brex for $5.15 billion, aiming to broaden its business payments presence and reduce dependence on consumer lending. The transaction is expected to close by mid-2026 and will be structured as 50% stock and 50% cash, according to the company’s announcement.
Capital One is a U.S. bank holding company known for credit cards, auto loans, and consumer banking services. Brex is a fintech that issues business credit cards and offers cash management accounts targeted at technology companies.
The acquisition news initially triggered a sharp decline in Capital One’s share price. The slide eased after the bank released a strong quarterly earnings report that showed higher profit driven by increased interest income from credit card balances.
Richard D. Fairbank, founder, chairman, and CEO of Capital One, framed the deal as strategic for payments. “Since our founding, we set out to build a payments company at the frontier of the technology revolution. Acquiring Brex accelerates this journey, especially in the business payments marketplace.”
Fairbank also praised Brex’s product mix. “Brex invented the integrated combination of corporate credit cards, spend management software, and banking together in a single platform. 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.”
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