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Capital One (COF) Makes a Deal to Acquire Velocity Black

Capital One Financial COF, the U.S credit card giant, acquired the leading digital concierge company, Velocity Black. The terms of the transaction were kept under wraps.

Velocity’s platform uses artificial intelligence and human experts to recommend and fulfill travel, entertainment, shopping and dining offerings to consumers around the globe.

Matt Knise, senior vice president of Capital One, stated, "Capital One and Velocity Black are committed to innovating on behalf of the customer, and both have raised the bar in their sectors. Velocity Black’s deep service expertise and unique tech platform complement Capital One’s focus on building experiences that meet the evolving needs of our customer."

Zia Yusuf, co-founder and CEO of Velocity Black, said, “Capital One is a unique company. Still founder-led, Capital One’s entrepreneurial spirit and customer-first, tech-led culture align beautifully with ours. Its decades of experience disrupting the status quo will be invaluable in further scaling the Velocity Black business. Together we will continue to pioneer best-in-class customer experiences for the digital age.”

After the deal completion, the two companies will be focusing on finding new approaches to solve consumer problems. Velocity Black's advanced technology will strengthen Capital One's delivery of exceptional experiences for consumers.

COF has expanded its offering through strategic acquisitions, thereby enhancing its platforms. In 2021, COF partnered with Hopper to build Capital One Travel, a travel booking portal that offers smart features specially to cardholders. In 2018, the company acquired Wikibuy, a technology-driven shopping app from Austin, TX. The expertise of Wikibuy is used to run Capital One Shopping, a platform that engages premium retailers with consumer shoppers.

Capital One also partnered with SevenRooms to expand Capital One Dining, a restaurant reservation booking platform that makes it easy for dinning enthusiasts to discover and book restaurants. These and the past business restructuring activities are likely to continue supporting the company’s financials.

Over the past six months, shares of COF have gained 11.8% compared with the industry’s upside of 6.7%.

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Zacks Investment Research

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Currently, COF carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Inorganic Expansion Efforts by Other Firms

LCNB Corp. LCNB has entered into an agreement to acquire Cincinnati Bancorp, Inc. CNNB in a stock-and-cash transaction. Subject to regulatory approval, CNNB shareholder approval and other customary conditions, the deal is expected to close in the fourth quarter of 2023. The approval of LCNB shareholders is not required. The total deal value is calculated at $43.7 million.

Tradeweb Markets Inc. TW is a leading global operator of electronic marketplaces and money markets. TW entered into a definitive agreement to acquire Yieldbroker, a prominent Australian trading platform, in an all-cash transaction of A$125 million. Closing of the deal, which is subject to customary conditions and regulatory reviews, is expected by the end of this year.

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Capital One Financial Corporation (COF) : Free Stock Analysis Report

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