American Express’ Center Deal: Strategic Move or Unexpected Gamble?

American Express on March 6 announced its plans
to acquire Center, a spend management platform. The news took the fintech
ecosystem by surprise, especially given the rumored $600 million price tag,
which closely aligns with Center’s last funding round valuation. This valuation
suggests a high revenue multiple, considering Center’s estimated $25 million
revenue run rate. 

Industry Reactions and Analysis  

The acquisition has sparked intense discussion among
industry experts, including Nik
Milanović , Art Levy
, and Sheel Mohnot , who
have attempted to decipher Amex’s rationale behind this deal. Even ChatGPT
weighed in, suggesting…