Kabbage CEO Rob Frohwein. Photo credit: Web Summit on Flickr, under Creative Commons license

Corroborating a recent report of American Express looking to acquire Kabbage, the small business lender, the financial services giant has today formally announced that it’s reached an agreement to acquire Kabbage for an undisclosed sum. The acquisition is expected to close later this year, currently subject to customary closing and regulatory conditions.

Kabbage, as a private company has raised hundreds of millions of dollars in equity funding and was valued at more than $1 billion by investors in a 2017 funding round. It’s unclear if American Express is paying an amount equating to or higher than that valuation for the company, in fact, seeming unlikely. For a hint on the acquisition price, a recent report from Bloomberg stated that American Express was looking to cough out up to $850 million for Kabbage.

Venture capital firms such as the SoftBank Vision Fund, BlueRun Ventures, and Thomvest are in line to reap sizeable amounts from Kabbage’s acquisition.