American Express acquires expense management startup Center for $600M to compete with Ramp
Mar 7, 2025
Key Points
- American Express acquires Center, an expense management startup founded by the creator of Concur, for $600M to compete directly with Ramp in corporate spend management.
- Center raised $30M in Series C funding in 2023 before the acquisition, giving founders and early investors a meaningful exit.
- Amex leverages its direct relationships with millions of businesses to distribute Center's software, betting distribution advantage can capture share from Ramp in a category where product and engineering velocity also drive wins.
Summary
American Express is acquiring Center, an expense management startup founded by the creator of Concur and his son, for $600M. The deal positions Amex to compete directly with Ramp in corporate spend management.
Center raised a $30M Series C in 2023. The $600M acquisition price marks a significant exit for founders and early investors, though Center's revenue, customer count, and deal specifics remain undisclosed.
Ramp has gained momentum in expense management and spend controls by building an API-first corporate card and procurement platform with strong venture backing and enterprise adoption. Amex brings direct relationships with millions of businesses and cardholders, distribution leverage that a standalone software company cannot easily match. By acquiring Center, Amex gains product expertise and an operating team it can fold into its existing merchant and corporate services.
This move differs from typical fintech acquisitions where a payments player buys software to bundle with its network. Amex already operates the underlying payments rails. The bet is that Center's software combined with Amex's brand and customer base can take share from Ramp and competitors in spend management. Success hinges on how well Amex integrates Center's product into its sales motion and whether distribution advantage translates to market share in a category where product differentiation and engineering velocity compete with sales channels for competitive advantage.