American Express Co. is buying St. Petersburg-based Revolution Money, an online payment company, for about $300 million.
The acquisition will help American Express stay up-to-date with technology, reach a younger generation of customers and launch new products, said Kenneth I. Chenault, chairman and CEO of American Express.
"We're bringing together the best of the online world with the best of the offline world," Chenault said in announcing the acquisition.
Revolution Money, whose backers include AOL co-founder Steve Case, was launched as part of Case's Revolution LLC in 2007. The company provides secure online payments through an Internet-based platform. Names and account numbers do not appear on Revolution cards. Instead, transactions are authorized by using a PIN number.
The company's payment accounts are FDIC insured and suited for social and instant messaging networks, Chenault said.
Revolution Money will become a subsidiary of American Express. The acquisition is expected to close during the first quarter of 2010.
"While Revolution Money is a young and relatively small company, we believe it has big potential," Chenault said. "Joining with American Express will help unlock their potential, while allowing us to deliver competitive online payment products more rapidly and efficiently."
Jason Hogg, founder of Revolution Money, will continue as president and chief executive officer. Former AOL executive Ted Leonsis, majority shareholder and chairman of Revolution, will become a special advisor to American Express.
"This is a big day for our company," Hogg said. "We will now be able to realize our potential by joining an industry icon. We will achieve it a lot faster than I ever imagined."
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