Acquisition Announcement: American Express to Acquire Center
Photo: Center CEO Naveen Singh (Center Photo)
Bellevue, Wash. – Thursday – American Express, a financial services giant, is making a move to expand its footprint in the expense management and corporate credit card space by announcing its plan to acquire Center, a Bellevue-based startup known for its innovative approach to managing business expenses. The acquisition, which is expected to close by the second quarter of 2025, marks a significant step for both companies as they aim to streamline corporate spending solutions.
Center’s Value Proposition: Simplifying Expense Management
Center, founded in 2017, has carved out a niche for itself by targeting middle-market companies. Its platform is designed to track corporate spending, particularly on travel and other expenses, offering a comprehensive solution that also includes a corporate credit card. This dual approach of expense tracking and credit card services positions Center as an attractive prospect for American Express, which is looking to bolster its own suite of business services.
Financial and Human Capital Details
The terms of the acquisition have not been disclosed, but Center’s journey to this point is notable. The company has raised over $140 million from private investors since its inception. With a workforce of approximately 160 employees, the acquisition will see these full-time workers joining the American Express team once the deal is finalized. Notably, Center raised $30 million in December 2023, indicating strong investor confidence despite the company trimming about 4% of its workforce in September as part of strategic adjustments.
Leadership and Strategic Vision
At the helm of Center is CEO Naveen Singh, who has been instrumental in steering the company towards growth. Singh has explored expansion through API development and potential partnerships with banks, showcasing a forward-thinking approach to scaling the business. Interestingly, Singh’s father, Steve Singh, is a significant figure in the industry, having co-founded Concur, a giant in expense management. Steve Singh now serves as the chairman of Center, bringing a wealth of experience and insights to the table.
Strategic Synergies and Industry Connections
The acquisition of Center by American Express is poised to create synergies that could redefine how businesses manage their expenses. Center’s expertise in tracking corporate spending aligns well with American Express’s extensive experience in providing financial services to businesses. Additionally, Center’s connections within the industry, including ties to Spotnana, a travel-as-a-service technology platform, and Troop, a group meetings and events company, indicate a network that American Express could leverage to enhance its offerings.
Conclusion: A New Chapter for Center and American Express
As American Express prepares to welcome Center into its fold, the move signals a strategic effort to strengthen its position in the corporate expense management market. With Center’s innovative solutions and team of seasoned professionals now part of American Express, this acquisition is set to open new avenues for both companies. The integration is expected to not only enhance American Express’s service portfolio but also provide Center with the resources and scale needed to expand its reach and impact in the industry.
