EXHIBIT 99.1
News Release News Release News Release News Release News Release News
[LOGO OF AMERICAN EXPRESS COMPANY]
CONTACTS:
MEDIA:
Joanna Lambert Michael O'Neill Brad Burns
(m) 646-705-4671 212-640-5951 202-776-1412
(o) 212-640-9668 mike.o'neill@aexp.com brad.burns@revolution.com
joanna.g.lambert@aexp.com
INVESTORS/ANALYSTS:
Toby Willard Ron Stovall
212-640-1958 212-640-5574
sherwood.s.willardjr@aexp.com ronald.stovall@aexp.com
AMERICAN EXPRESS TO ACQUIRE REVOLUTION MONEY TO DEVELOP
NEXT GENERATION PAYMENT PRODUCTS
DEAL COMBINES STATE-OF-THE-ART TECHNOLOGY PLATFORM WITH LEADING GLOBAL BRAND
ST PETERSBURG, FL, November 18, 2009 - American Express Company today
announced it has agreed to acquire Revolution Money, a Revolution LLC company.
Revolution Money, launched by AOL Co-founder Steve Case's Revolution LLC in
2007, provides secure payments through an internet based platform. No names or
account numbers appear on Revolution cards and transactions are authorized by
using a PIN number. The company's online person-to-person payment accounts are
FDIC insured and ideally suited for social and instant messaging networks. It
also offers a prepaid card linked to those accounts that can be used for
offline payments or to withdraw cash from ATMs throughout the United States.
"New payments products and platforms are evolving rapidly and it's important
for us to keep identifying cutting edge technologies that can extend our
leadership beyond the traditional payments arena," said Kenneth I. Chenault,
chairman and chief executive officer of American Express. "While Revolution
Money is a young and relatively small company, we believe it has big
potential. This is a smart, nimble business. It's run by an accomplished
management team who have quickly developed some cutting edge e-payment
offerings. Joining with American Express will help unlock their potential,
while allowing us to deliver competitive online payment products more rapidly
and efficiently."
"Revolution Money has a lot of room to grow as it competes head-to-head with
other online and person-to-person payment providers. We are committed to using
our global brand recognition, marketing reach and network expertise to help
reach a critical mass of customers," said Mr. Chenault.
Jason Hogg, founder and chief executive officer of Revolution Money, will
continue as president and chief executive officer. Ted Leonsis, a Revolution
Money angel investor, major shareholder and chairman, will become a special
advisor to American Express working with Mr. Chenault on overall digital and
online payments strategy.
"We have built a next-generation payments platform that will enable American
Express to compete even more effectively, especially against online
competitors," said Mr. Leonsis. "Revolution Money's technology brings together
the online and offline worlds in a way that can transform the way consumers
securely transact. And with the low cost structure enabled by internet
technology, American Express is now even better positioned to scale their
online presence over time."
"Since our inception our sole goal has been to build a payments platform that
can help transform the industry," said Mr. Hogg. "Becoming part of American
Express will enable us to reach that goal by scaling our technology and
business and providing even greater consumer benefits. I, and the Revolution
Money employees who helped build our company, are honored to be joining the
American Express family and we are excited about what the future holds."
The transaction, which is subject to regulatory review, is expected to close
in the first quarter of 2010. The purchase price is expected to be
approximately $300 million. Upon closing, Revolution Money would operate as a
subsidiary of American Express and be the first component of its recently
formed Enterprise Growth organization. Enterprise Growth was formed to
leverage American Express' existing assets and capabilities to generate
incremental fee revenue and to drive the company's entry into new payment
areas and related businesses.
"We want to preserve the talent and culture that has made Revolution Money
successful and we will be working with them to make the most of our respective
strengths," said Mr. Chenault. He said that the initial areas of focus will
include:
o Developing re-loadable, prepaid products for new segments of the market
o Introducing new products for cardmembers who currently use other alternative
payment systems
o Creating payment alternatives designed for social media sites and
allowing open APIs that can help developers distribute new product
innovations
o Developing mobile payments solutions in the United States
Other opportunities will include expanding Revolution Money payment solutions
internationally, extending product offerings to banks that issue cards on the
American Express network and creating new forms of PIN-based debit products.
MEDIA CONFERENCE CALL - LIVE AUDIO WEBCAST
A conference call with members of the media will be held today to discuss this
announcement at 10:30 AM EST. The call will be hosted by Kenneth I. Chenault,
chairman and chief executive officer of American Express, Jason Hogg, founder
and chief executive officer of Revolution Money and Ted Leonsis, Revolution
Money's chairman.
A live audio webcast of the media conference call will be accessible to the
general public and investors at http://ir.americanexpress.com. A replay of the
call will be available at the same Web site address shortly after the call.
ABOUT REVOLUTION MONEY
Revolution Money, a secure, state-of-the-art technology platform, was created
to deliver significant value to both consumers and merchants through two
products, RevolutionCard and RevolutionMoneyExchange(TM). The RevolutionCard
provides consumers with enhanced PIN-based security, identity protection and
numerous merchant discounts and incentives. MoneyExchange is an online payment
service that offers consumers an easy, secure and free way to instantly send
and receive money online to and from their friends, family and associates. St.
Petersburg, Florida-based Revolution Money is part of the family of companies
within Revolution LLC, which was founded by AOL co-founder Steve Case to drive
transformative change by shifting power to consumers. www.revolutionmoney.com.
ABOUT AMERICAN EXPRESS
American Express Company is a leading global payments and travel company
founded in 1850. For more information, visit www.americanexpress.com.
INFORMATION RELATED TO FORWARD-LOOKING STATEMENTS
THIS REPORT INCLUDES FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, WHICH ARE SUBJECT TO RISKS
AND UNCERTAINTIES. THE FORWARD-LOOKING STATEMENTS, WHICH ADDRESS THE COMPANY'S
EXPECTED BUSINESS AND FINANCIAL PERFORMANCE, AMONG OTHER MATTERS, CONTAIN
WORDS SUCH AS "BELIEVE," "EXPECT," "ANTICIPATE," "OPTIMISTIC," "INTEND,"
"PLAN," "AIM," "WILL," "MAY," "SHOULD," "COULD," "WOULD," "LIKELY," AND
SIMILAR EXPRESSIONS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON
THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH
THEY ARE MADE. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY
FORWARD-LOOKING STATEMENTS. FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THESE FORWARD-LOOKING STATEMENTS INCLUDE, BUT ARE NOT LIMITED
TO, THE FOLLOWING: THE UNDERLYING ASSUMPTIONS RELATED TO THE TRANSACTION
PROVING TO BE INACCURATE OR UNREALIZED, EVENTS IMPACTING THE LIKELIHOOD AND
TIMING OF THE COMPLETION OF THE TRANSACTION, SUCH AS REGULATORY APPROVALS, AND
THE COMPANY'S ABILITY TO EXPLOIT THE PAYMENT PLATFORM AND OTHER ASSETS TO BE
ACQUIRED UPON CONSUMMATION OF THE TRANSACTION AND EXECUTE ON ITS STRATEGY TO
DEVELOP AND ISSUE NEW AND ENHANCED PAYMENT PRODUCTS AND SERVICES AND INCREASE
THE COMPANY'S REVENUES FROM SUCH PRODUCTS AND SERVICES.