Capital One to Acquire Brex for $5.15 Billion in Bold Bet on Business Payments

Capital One announced Thursday that it will acquire Brex for $5.15 billion, paying half in cash and half in stock, according to details released alongside its fourth-quarter earnings. The deal values Brex well below its prior peak valuation of $12.3 billion, reflecting the tougher funding environment that has reshaped the fintech sector since the era of ultra-low interest rates.

Investors reacted cautiously to the news, with Capital One shares falling about 3% following the announcement. Still, the acquisition fits squarely within Fairbank’s strategy of expanding the bank’s capabilities beyond traditional consumer credit and into technology-driven payments infrastructure. Last year, Capital One completed its $35 billion acquisition of Discover Financial, gaining access to a major payments network and cementing its position as a dominant player in the credit card industry.

In a statement, Fairbank said Brex would accelerate Capital One’s ambitions in business payments, describing the startup as a rare fintech that successfully built a vertically integrated platform combining corporate cards, banking services and spend management software. He framed the deal as a way to position Capital One “at the frontier of the technology revolution” reshaping financial services.

Founded during a period of abundant venture capital, Brex initially made its name by offering credit cards and lending products tailored to startups. Over time, the company broadened its focus, expanding into traditional industries and attracting larger, more established clients. Today, its customer base includes companies such as Robinhood, Zoom and Anthropic.

The sharp drop from Brex’s previous valuation highlights the pressures facing fintech firms as higher interest rates and tighter capital markets force a reassessment of growth expectations. Even so, Capital One appears confident that Brex’s technology represents the future of business payments. According to a person familiar with the bank’s thinking, Capital One increasingly viewed Brex’s integrated model as more compelling than its own in-house offerings.

Brex CEO Pedro Franceschi said the company did not pursue the deal out of necessity, noting that Brex’s standalone growth remained strong. Instead, he argued that combining Brex’s software-driven platform with Capital One’s scale, balance sheet and regulatory expertise would allow the business to grow faster than it could on its own.

The acquisition reinforces Capital One’s reputation as one of the most aggressive U.S. banks in pursuing large-scale deals and signals that traditional financial institutions are increasingly willing to buy, rather than build, advanced fintech capabilities as competition in digital payments intensifies.