Capital One to Acquire Brex is the move rippling through Wall Street as the consumer lender announced Thursday it will buy the fintech firm in a cash-and-stock transaction valued at $5.15 billion, while also reporting a sharp jump in quarterly profit fueled by higher interest income from credit card balances.
Despite the upbeat earnings, investor reaction was cautious. Shares of Capital One slipped more than 2% in after-hours trading, signaling unease about valuation, regulatory risk and the shifting economics of consumer lending.
A Deal Timed for a New M&A Cycle
The acquisition arrives as dealmakers brace for a potentially blockbuster 2026, with executives racing to bulk up amid rising economic volatility and geopolitical uncertainty. Like ships merging fleets before rough seas, banks and fintechs are seeking scale to weather what lies ahead.
Capital One said the transaction is expected to close in mid-2026 and will be structured roughly as a 50-50 split between cash and stock.
What Brex Brings to the Table
Brex operates in corporate credit cards and expense management software, serving high-profile clients including DoorDash and Robinhood. Its platform spans more than 120 countries, according to the company’s website.
For Capital One, the deal offers a strategic hedge. By expanding deeper into corporate spending tools, the bank reduces its heavy reliance on consumer credit — a buffer that could soften the blow of an economic slowdown.
Capital One said Brex co-founder and CEO Pedro Franceschi will continue to lead the company after the deal closes, preserving continuity at the fast-growing fintech.
