7th Feb 2008 13:48
Barclays PLC07 February 2008 7 February 2008 Barclays PLC Barclays to acquire Discover's UK credit card business Barclays Bank PLC ("Barclays") has agreed to acquire Discover's UK credit cardbusiness for a consideration of approximately £35m, payable in cash. Under the agreement, Barclays will purchase Discover's UK credit card business("the Business"), consisting of approximately 1.7 million credit card accountswith approximately £2.0 billion of gross receivables (Note 1); the Goldfishbrand; its operating facilities and staff; and certain legal entities. Barclaysintends to integrate the Business into its credit card division, Barclaycard. The consideration is subject to an adjustment mechanism based on the net assetvalue of the Business at completion, which is estimated to be £129m (Note 2).Completion is subject to various conditions, including competition clearance,and is expected to occur during the first half of 2008. Antony Jenkins, Chief Executive of Barclaycard, said: "Barclaycard is one ofthe largest card issuers in the UK with acknowledged expertise in riskmanagement, customer data management and marketing. Discover's UK credit cardbusiness has similar credit characteristics to our existing UK business. Thecombination provides an attractive opportunity to deploy our expertise across alarger number of cards and customers." - Ends - Note 1: On a managed basis.Note 2: Estimated net asset value on a managed basis using US generally acceptedaccounting principles. For further information please contact Barclays Investor Relations Media RelationsMark Merson Alistair Smith (Barclays)+44 (0) 20 7116 5752 +44 (0) 20 7116 6132 Neil Temple James Cooke (Barclaycard)+44 (0) 20 7116 2928 +44 (0) 1604 251 229 Discover Investor Relations Media RelationsCraig Streem Leslie Sutton+1 224 405 3575 +44 (0) 20 3162 6656 About BarclaysBarclays is a major global financial services provider engaged in retail andcommercial banking, credit cards, investment banking, wealth management andinvestment management services with an extensive international presence inEurope, the USA, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates inover 50 countries and employs over 127,000 people. Barclays moves, lends,invests and protects money for over 27 million customers and clients worldwide.For further information about Barclays, please visit our websitewww.barclays.com. About BarclaycardBarclaycard is a multi-brand credit card and loans business which also processescard payments for retailers and merchants and issues credit and charge cards tocorporate customers and the UK Government. It is one of Europe's leading creditcard businesses and has an increasing presence in the United States. In the UK, Barclaycard comprises Barclaycard, Sky Card, Thomas Cook and Argosbranded credit cards and FIRSTPLUS secured lending. Barclaycard also managescard operations on behalf of Solution Personal Finance. Outside the UK, Barclaycard provides credit cards in the United States, Germany,Spain, Italy, Portugal, India, the United Arab Emirates and Africa. In theNordic region, Barclaycard operates through Entercard, a joint venture withForeningsSparbanken (Swedbank). Key facts: Number of UK card customers: 9.6mBarclaycard International cards in issue: 7.6mNumber of Barclaycard Business retailer/merchant relationships: 95,000 About Discover Financial ServicesDiscover Financial Services (NYSE: DFS) is a leading credit card issuer andelectronic payment services company with one of the most recognized brands inU.S. financial services. The company operates the Discover Card, America's cashrewards pioneer. Since its inception in1986, the company has become one of thelargest card issuers in the United States. Its payments businesses consist ofthe Discover Network, with millions of merchant and cash access locations, andPULSE, one of the nation's leading ATM/debit networks. For more information,visit www.discoverfinancial.com. Forward-looking statementsThis document contains certain forward-looking statements within the meaning ofSection 21E of the US Securities Exchange Act of 1934, as amended, and Section27A of the US Securities Act of 1933, as amended, with respect to certain ofBarclays plans and its current goals and expectations relating to its futurefinancial condition and performance. These forward-looking statements can beidentified by the fact that they do not relate only to historical or currentfacts. Forward-looking statements sometimes use words such as 'aim','anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal','believe', or other words of similar meaning. Examples of forward-lookingstatements include, among others, statements regarding Barclays future financialposition, income growth, impairment charges, business strategy, projected levelsof growth in the banking and financial markets, projected costs, estimates ofcapital expenditures, and plans and objectives for future operations. By their nature, forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances, including, but not limited to,global as well as US economic and business conditions, market related risks suchas changes in interest rates and exchange rates, the policies and actions ofgovernmental and regulatory authorities, changes in legislation, and the impactof competition - a number of which factors are beyond Barclays control. As aresult, Barclays actual future results may differ materially from the plans,goals, and expectations set forth in Barclays forward-looking statements. Anyforward-looking statements made by or on behalf of Barclays speak only as of thedate they are made. Barclays does not undertake to update forward-lookingstatements to reflect any changes in Barclays expectations with regard theretoor any changes in events, conditions or circumstances on which any suchstatement is based. The reader should, however, consult any additionaldisclosures that Barclays has made or may make in documents it has filed or mayfile with the SEC. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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