American Express (NYSE:AXP) is in advanced talks to buy online small-business lender Kabbage, which is backed by investors including SoftBank's (OTCPK:SFTBY) (OTCPK:SFTBF) Vision Fund, Bloomberg reports, citing a person familiar with the matter.
The all-cash transaction, including retention payments, could value the lender at as much as $850M, the person said.
Already the largest provider of small-business credit cards in the U.S., American Express could bolster its lending to mom-and-pop shops with the acquisition of Kabbage.
AXP gains 2.0% in premarket trading.
