Capital One Financial Corporation has made headlines once again, announcing on January 22, 2026, that it has entered into a definitive agreement to acquire Brex, a leading fintech company, in a deal valued at $5.15 billion. The transaction, which will be split evenly between cash and stock, is expected to close in the middle of 2026, pending customary closing conditions. This acquisition marks another bold move by Capital One CEO Richard Fairbank, who has steered the company through a series of high-profile deals, including last year’s $35 billion purchase of Discover Financial. According to Business Wire, Fairbank described the acquisition as a leap forward in Capital One’s strategy to lead the business payments marketplace.
Brex, founded in 2017, has quickly risen to prominence as an AI-native software platform that offers an integrated suite of corporate cards, automated expense management, and real-time payment solutions. Its technology, which leverages AI agents to automate complex workflows and reduce manual review, has attracted more than 25,000 clients across over 50 countries—including high-profile names such as DoorDash, TikTok, Robinhood, Zoom, and the Boston Celtics. As reported by Reuters, Brex’s platform is now used in more than 120 countries, reflecting its broad international reach.
Pedro Franceschi, Brex’s founder and CEO, will remain at the helm of the company following the acquisition, ensuring continuity and leadership as Brex transitions into Capital One’s corporate structure. Franceschi expressed excitement about the partnership, saying, “We started Brex in 2017 as a category creator—bringing together financial services and software into one AI-native platform. Now we get to supercharge our next chapter in partnership with the team at Capital One. Together, we’ll maximize founder mode by combining Brex’s payments expertise and spend management software with Capital One’s massive scale, sophisticated underwriting, and compelling brand to accelerate growth and increase the speed at which we can offer better finance solutions to the millions of businesses in the U.S. mainstream economy.”
Capital One’s decision to acquire Brex comes at a time when the fintech sector is facing significant headwinds. Brex was previously valued at $12.3 billion, but the current deal reflects a more than 50% decline in valuation since 2023. This drop highlights the challenges fintech firms have encountered as economic conditions shift and interest rates rise. Despite these obstacles, Brex has managed to expand beyond its original niche of lending to startups, now serving both burgeoning tech companies and established firms across various sectors. According to CNBC, Capital One was drawn to Brex’s unique model, which combines corporate cards, banking, and spend management software in a single, vertically integrated platform.
“Since our founding, we set out to build a payments company at the frontier of the technology revolution,” Fairbank noted in a statement. “Acquiring Brex accelerates this journey, especially in the business payments marketplace.” He added, “Brex invented the integrated combination of corporate credit cards, spend management software and banking together in a single platform. They have taken the rarest of journeys for a fintech, building a vertically integrated platform from the bottom of the tech stack to the top.”
Still, the deal was met with a mixed reaction from investors. Shares of Capital One fell more than 5% immediately after the announcement, though robust quarterly results helped the stock recover some of those losses, ultimately trading down about 1.5% by the end of the day. The bank’s fourth-quarter 2025 earnings, reported alongside the acquisition news, showed adjusted earnings per share of $3.86—missing analyst estimates of $4.17—but revenue came in at $15.6 billion, slightly above expectations and up from the previous year. Net interest income soared by 54% to $12.47 billion in the quarter, reflecting strong performance in Capital One’s core lending business.
Capital One’s provision for credit losses increased by $1.4 billion to $4.1 billion in the fourth quarter, including net charge-offs of $3.8 billion and a $302 million loan reserve build. Period-end loans held for investment rose 2% to $453.6 billion, with credit card loans up 3% to $279.6 billion. Total deposits increased 1% to $475.8 billion, and the company maintained a solid Common Equity Tier 1 capital ratio of 14.3% under Basel III as of December 31, 2025. For the full year, total net revenue jumped 37% to $53.4 billion, while total non-interest expenses climbed 42% to $30.5 billion.
Industry analysts suggest that the Brex acquisition could help Capital One diversify its revenue streams and reduce reliance on consumer credit, particularly as economic and geopolitical uncertainties loom. According to Reuters, Brex’s suite of products could give Capital One greater exposure to business clients, cushioning the bank against potential downturns in consumer lending. The move comes as dealmakers anticipate a robust year for mergers and acquisitions in 2026, with companies seeking scale and technological advantages to weather unpredictable market conditions.
The acquisition also arrives amid political debate over credit card interest rates. Former President Donald Trump recently proposed a one-year cap on credit card interest rates at 10%, a move that banking industry leaders—including Capital One’s Fairbank—warn could have unintended consequences. “We feel strongly that a cap on interest rates would catalyze a number of unintended consequences,” Fairbank said during a call with analysts, cautioning that restricting credit availability could dampen consumer spending and potentially trigger a recession. Other major banks, such as JPMorgan Chase and Bank of America, are also grappling with the implications of such a policy, with some considering new products to comply with potential regulatory changes.
Capital One’s acquisition of Brex is being closely watched as a bellwether for the future of banking and fintech in the United States. The deal, advised by BofA Securities for Capital One and Centerview Partners for Brex, underscores the growing importance of technology-driven solutions in the financial sector. As the only major U.S. bank to have fully migrated to the public cloud, Capital One is well-positioned to integrate Brex’s AI-powered platform and expand its footprint in the business payments space.
While the acquisition is not without risks—especially given the volatile valuations in the fintech sector and the uncertain regulatory landscape—both companies are betting that their combined strengths will unlock new opportunities for growth. As Franceschi put it in an interview with CNBC, “We didn’t have to pursue this acquisition, our growth was incredibly strong. But combining Brex’s technology with Capital One’s reach and resources would grow the startup’s scale faster than as a standalone firm.”
As the financial world awaits the closing of this landmark deal, all eyes will be on how Capital One and Brex navigate the challenges ahead and deliver on their promise to reshape the future of business payments in the U.S. and beyond.