American Express Co. reported in November 2009 that it had agreed to acquire alternative payment solutions provider Revolution Money LLC for approximately $300 million. Subject to regulatory review the transaction is expected to close in the first quarter of 2010.
Revolution Money will become the first component of AmEx's recently formed Enterprise Growth organization, which was established to focus on generating incremental fee revenue and drive the company's entry into new payment areas. Kenneth I. Chenault, AmEx's Chairman and Chief Executive Officer, said the new Revolution Money subsidiary's initial areas of focus will include:
"New payment products and platforms are evolving more rapidly than at any time I can remember," Chenault said. "And while there are many growth opportunities in our traditional payments business, we believe that it is important for us to keep identifying cutting-edge technologies."
Chenault said that Revolution Money (which was launched by AOL co-founder Steve Case's Revolution LLC in 2007) has significant growth potential as it competes with other online, person-to-person payment providers.
"We believe joining with us will help unlock [Revolution Money's] potential, enable us to deliver competitive online payment products more rapidly and efficiently, give us additional online capabilities, speed our entry into emerging payments, as well as broaden our offerings and access to new customer segments," he said.
Chenault added that Jason Hogg, founder and CEO of Revolution Money, will continue as President and CEO. Ted Leonsis, Chairman of Revolution Money, will become a special advisor to AmEx, working with Chenault on mobile and online payment strategies.
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