JCPenney has completed the sale of its Direct Marketing Services to Dutch insurer Aegon N.V., the parent company of Aegon USA Inc.
The transaction was completed May 30.
Penney said in March that it would sell the service, along with its life insurance subsidiaries, for $1.3 billion in cash. Under the agreement, the companies will establish a 15-year strategic marketing alliance to offer an expanded range of financial and membership service products to JCPenney's customers.
The retailer will receive the cash proceeds at closing and annual cash payments over the next 15 years for a total of $300 million under the marketing services agreement. The additional payments will bring the value of the transactions to $1.6 billion.
J.C. Penney Direct Marketing Services Inc. markets life, health, accident, disability and credit insurance as well as membership services products to various credit card files by direct response in the United States and Canada.