Acquisition2024-02-19confirmed

Capital One Financial Corporation × Discover Financial Services

Capital One announced a definitive agreement to acquire Discover Financial Services in an all-stock deal valued at $35.3 billion. [56, 75] Under the terms, Discover shareholders will receive 1.0192 Capital One shares for each Discover share, a 26.6% premium over the closing price on February 16, 2024. [67] The deal combines two of the largest US credit card companies and gives Capital One ownership of the Discover payments network, which includes Discover, PULSE, and Diners Club International. [62]

Price paid
$35.3B
asset price, paid once
Losing bid
Per unit
504.2857
$ / merchant acceptance points

The asset

The acquisition of Discover Financial Services in an all-stock transaction, combining its credit card business and its global payments network with Capital One's operations. [62, 75]

  • 70M merchant acceptance points

The record

Seller status
Going concern
Sector
Credit cards & payments network
Modalities
transaction data, credit data, payment network data
Jurisdiction
US

What it means if you hold data

This acquisition creates the largest U.S. credit card issuer by loan volume and positions Capital One to build a payments network that can compete more directly with giants Visa and Mastercard. [62, 75] The vertical integration of a major card issuer with a global payments network is a significant strategic shift in the financial services and payments industry. [62]

Sources