It may not be a Centurion Card, but it might be the next best thing. A quick word of congratulations to the team at Rearden Commerce who scored a major coup with today's announced relationship with American Express.
American Express Business Travel, the world's largest provider of corporate travel services, has announced AXIOM (American Express Intelligent Online Marketplace) that will offer Rearden's Personal Assistant service to its 4,000 plus corporate clients. In addition to providing Rearden with a massive distribution partner, American Express is investing $22.5 million in a "minority interest" in the SaaS vendor.
AXIOM white labels the core Rearden platform which allows business travelers access to services from over 135,000 affiliated vendors. American Express today cited a report that less than half of the $36B spent on travel services are done via corporate sponsored online services. AXIOM aims to change that. Dan Farber puts some more flesh on the bones:
Rearden Commerce CEO Patrick Grady told me that the deal instantly provides his company with a faster path to reaching new customers, especially in the SMB market. "The true test is if we can get scale," he said. Getting in bed with American Express Business Travel is certainly an efficient way to scale.
American Express Business Travel handles $21 billion of travel spending, with more than 70 percent of the Fortune 500 on board. In 2005, the company did 6 million air, hotel and car travel transactions, according to Andy McGraw, senior vice president of American Express Business Travel. McGraw hopes to tap into the services outside of air, hotel and travel that Rearden Commerce actively manages, with 135,000 merchants across 10 categories (including air, hotel and car rental). Since the private label deal closed in July, American Express has gained 15 new clients, said McGraw. Rearden Commerce has acquired 36 customers since it was founded in 2000, Grady said.
Fellow Irregular and spend management guru Jason Busch has a more detailed take on today's news, including a juicy tidbit that Amex intends to acquire Harbor Payments in a related move to bolster its commitment to the category.
While I'm still trying to get confirmation on the terms of the Amex investment, several people (including Dan) place the post-money valuation at north of $200mm. If that's true, it means two things. One, Rearden is gaining significant traction and is on its way to becoming one of the next generation of SaaS success stories. Two, in order for the investors to see a good return, Rearden likely has its sights set on an IPO in the not-too-distant future.
Related Articles:
- Private Company Spotlight: Rearden Commerce (Woodrow)
- Amex Gets Serious (Jason Busch)
- Rearden unShrugged (Jason Busch)
- Rearden Commerce goes for scale with Amex (Dan Farber)
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