American Express just announced two acquisitions: find out more

American Express Company (NYSE: AXP) is in focus this morning after announcing two new acquisitions. 

Shares of the credit card company have gained more than 25% since their year-to-date low in mid-January. 

American Express to acquire Tock

AMEX is buying Tock - a Chicago-based provider of reservation, table, and event management technology for about $400 million. 

The financial technology company is taking over Tock from Squarespace that acquired it in 2021. Matthew Tucker - the head of Tock said in a press release today:

Tock currently serves a total of some 7,000 bookable venues, including wineries and restaurants. American Express stock currently pays a dividend yield of 1.22%.

AMEX is buying Rooam

On Friday, American Express also signed an agreement to buy Rooam - a tech specialist within the hospitality industry. 

The fintech giant did not reveal financial details of the aforementioned acquisition. Howard Grosfield - the president of U.S. Consumer Services at AMEX said in a press release today:

American Express is convinced that the Rooam acquisition will help strengthen its footprint in mobile ordering and payment capabilities. In April, the New York listed firm reported an 11% annualised growth in revenue for its first financial quarter. 

AXP has upside to $265

Note that American Express and Squarespace also agreed to collaborate on offering additional benefits to small businesses on Friday. Such a partnership will leverage card member benefits and the Amex Offers programme. 

The news arrives only days after Sanjay Sakhrani - a KBW analyst reiterated his “buy” rating on American Express shares that he expects will hit $265 within the next twelve months. His price objective indicates potential for about a 15% gain from here. 

Sakhrani remains bullish on $AXP following its strong guidance for 2024. AMEX forecasts up to an 11% year-on-year growth in revenue on $12.65 to $13.15 of per-share earnings this year. Stephen J. Squeri - its chief executive said in April: