CAPITAL ONE FINANCIAL CORP acquired HSBC U.S. credit card business for ~$31.3 billion cash aggregate consideration at close (acquired ~$28.2 billion of credit card receivables; included a ~$2.5 billion premium; original 8.75% premium terms), a transaction completed in May 2012, structured as all cash. The deal was a Carve-out.
HSBC U.S. credit card business operates in Credit cards, is based in United States. Capital One acquired the U.S. credit card and private-label credit card business of HSBC Finance Corporation, HSBC USA Inc. and HSBC Technology and Services (USA) under a Purchase and Assumption Agreement, excluding the HSBC Bank USA consumer credit card program and certain retained assets. At close the company acquired about $28.2 billion of credit card receivables plus roughly $0.6 billion of other net assets for approximately $31.3 billion in cash, which included a premium of about $2.5 billion on the receivables. The original agreement priced the premium at 8.75% of receivables.
Adds a large, established U.S. card receivables book and private-label/retail partnerships, deepening scale in Capital One's core card franchise.
A sizeable, seasoned receivables portfolio with retail partner relationships available as a clean carve-out. Card platform scale and partner relationships; funded partly via common stock and debt issuance. Integrated into Capital One's card business (the 'CRS Business'); HSBC provided transition services for up to two-to-three years under a Purchaser Transition Services Agreement.
Advisory firms were not disclosed for this transaction.