Capital One, an American banking company, has acquired travel tech startup Lola for an undisclosed sum to augment its fintech capabilities.
Under the terms of the transaction, Lola co-founder Paul English and chief executive Mike Volpe will join Capital One along with the entire team.
The lender seeks to leverage Lola’s B2B payment capabilities to offer digital solutions to businesses.
Capital One Commercial Bank EVP Konrad Schwarz said: “The Lola team’s customer-centric focus and their ability to rapidly build software at the speed required by an evolving market, combined with Capital One’s customer, brand, and technology scale, make us well-positioned to transform the business payments industry.”
The team will operate out of Capital One’s new location in Kendall Square, which will give it the flexibility to ramp up its hiring and deepen its ties to the Boston tech community, Lola added.
As per local media reports, Lola struggled during the covid-19 pandemic and was forced to close its office and corporate contracts.
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In a separate development, Capital One has announced that it will not reopen its offices in the US on 2 November 2021.
The lender added that specific date for a full-scale reopening has not been decided yet and associates will be notified 30 days in advance before any decision is made.
Capital One recorded a net income of $3.3bn for the first quarter of 2021 with a net loss being $1.3bn for the same period in 2020.