February 19, 2013

Citi will acquire Capital One's portfolio of Best Buy private label and co-branded credit card accounts for $7 billion.

Capital One announced the sale this morning, adding that the bank and Best Buy have agreed to end their contractual credit card relationship early.

The sale, which is subject to customary closing conditions, and early termination of the Best Buy partnership are expected to be finalized in the third quarter of 2013. Upon closing, Capital On said it expects that the proceeds from the sale will approximate the book value of the accounts, resulting in no significant gain or loss on the transaction.

"We have a proven, scale partnerships infrastructure and a great portfolio of partners," said Capital One's Bill Cilluffo, EVP, Card Partnerships, in a statement. "Our partnerships business continues to deliver strong contributions to our results and serves as a platform for future growth potential."

ABOUT THE AUTHOR
Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as ...