Citigroup Buys Sears Card Business for $31.8B

Share this article:
Citigroup said yesterday that it completed the previously announced acquisition of the Sears Credit Card and Financial Products business.


The purchase price of $31.8 billion, at closing, included a 10 percent premium on Sears private-label and bankcard credit card receivables of $28.6 billion -- or $2.9 billion -- and $300 million for other assets, business facilities and employees.


Included in the purchase price was the assumption of $10.4 billion in securitized debt and other liabilities.


Citigroup and Sears also entered a multi-year marketing and servicing agreement involving a range of each company's businesses, products and services.


Citigroup said there would be no immediate changes to the Sears card programs or operations.


With the addition of 64 million Sears accounts and $29 billion in card receivables, the acquisition boosts Citigroup's portfolio to 161 million accounts and $146 billion in card receivables in North America, and 176 million accounts and $160 billion in card receivables globally.


Share this article:
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

Generating Loyalty for Brands and Retailers in an Omnichannel World

Generating Loyalty for Brands and Retailers in an ...

Harnessing personas, loyalty programs, and new technologies can help marketers better connect with customers.

News Byte: Salesforce Forms Unit to Focus on Verticals

News Byte: Salesforce Forms Unit to Focus on ...

The industries business unit, led by ex-White House CIO Vivek Kundra, will serve six industry groupings.

Columbia U. Puts the "Do" in "Donation"

Columbia U. Puts the "Do" in "Donation"

Columbia University raises nearly $7 million in donations in just 24 hours with a combination of social media, live events, and gamification.