American Express Makes a Revolutionary Deal

American Express Co. has an agreement to acquire Revolution Money for about $300 million.

The acquisition would keep American Express on the cutting edge in terms of new payments products and platforms, Kenneth Chenault, chairman and chief executive, said in a release.

Revolution Money, based in St. Petersburg, Florida, was founded by AOL co-founder Steve Case’s Revolution LLC in 2007. Revolution Money provides secure payments through an Internet-based platform and offers both a credit card and an online payments system. In the release, Chenault called Revolution Money a “smart, nimble business” with an “accomplished management team.”

“Joining with American Express will help unlock their potential, while allowing us to deliver competitive online payment products more rapidly and efficiently,” Chenault said.

Jason Hogg, founder and chief executive of Revolution Money, will continue as president and chief executive. Ted Leonsis, a Revolution Money angel investor, major shareholder, and chairman, will become a special adviser to American Express, the release said.

The transaction is subject to regulatory review and expected to close in the first quarter of 2010. After closing, Revolution Money would operate as a subsidiary of American Express and be the first component of its recently formed “Enterprise Growth” organization, founded to leverage American Express’ existing assets and capabilities to generate incremental fee revenue, the release said.

To read more about Steve Case and his work with Revolution Health, click here.