American Express to purchase Revolution Money, created by AOL co-founder Case, for $300M
By APWednesday, November 18, 2009
American Express to buy Case’s Revolution Money
ST PETERSBURG, Fla. — American Express Co. said Wednesday that it will buy Revolution Money for about $300 million in an effort to stay current with ever-changing technology in the marketplace.
Revolution Money, which was established by AOL co-founder Steve Case’s Revolution LLC in 2007, offers customers secure online payments whereby transactions are authorized with a PIN number. Its cards do not include names or account numbers.
“New payments products and platforms are evolving rapidly and it’s important for us to keep identifying cutting edge technologies that can extend our leadership beyond the traditional payments arena,” American Express Chairman and CEO Kenneth I. Chenault said in a statement.
Revolution Money founder Jason Hogg will remain as the company’s president and CEO. Majority shareholder and Chairman Ted Leonsis will serve as a special adviser to American Express, helping with the digital and online payments strategy.
The acquisition is expected to close in the first quarter. Revolution Money will become an American Express subsidiary after the deal’s completion and become part of its new Enterprise Growth unit.
