Capital One Acquires Brex in $5.15B Fintech Megadeal
Capital One Financial Corp. is making a strategic leap into fintech dominance with its $5.15 billion acquisition of Brex, the corporate credit card startup. The cash-and-stock deal, expected to close by mid-2026, sent shockwaves through markets before stabilizing on strong earnings.
The acquisition pairs Capital One's 45 million cardholders with Brex's tech-forward business banking solutions. CEO Richard Fairbank called the MOVE "a natural evolution" of their digital transformation strategy during Thursday's earnings call, where the bank reported increased profits from credit card interest income.
Market reactions were initially volatile, with Capital One shares dipping 3% post-announcement before recovering. Analysts suggest the deal positions the bank to compete with JPMorgan's commercial banking division and fintech rivals like Ramp.