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When Steve Case’s internet payment startup Revolution Money raised a $42 million round last April from Goldman Sachs, Morgan Stanley and Citigroup, Chairman Ted Leonsis said the company had no plans for a sale or IPO before 2011. Looks like the calendar pages — and the company — flipped a lot faster than Leonsis expected: Revolution Money just went to American Express for $300 million. In two disclosed rounds, the startup founded by Steve Case and his DC-based Revolution LLC in 2007, Revolution Money raised close to $100 million.
Writing about the sale on his own blog, Leonsis described Case and himself as “the most significant investors in this enterprise” and said he will work with AmEx as a special adviser on “overall digital and online payments strategy.” The post includes the formal deal announcement.
The deal is subject to the usual regulatory approval but they expect it to close in the first quarter of 2010.Revolution Money will be the first “component” of a new Enterprise Growth unit at AmEx. They plan to keep the team actually running it intact, including cofounder and CEO Jason Hogg.