CitiBank has reached a $1.3 billion deal with credit card provider Personal Loan Agreement, the company said Tuesday.
The transaction is part of a $3.6 billion credit card merger that Citi and the American Express Corp. announced last week.
The transaction brings the combined company’s total debt to $12.7 billion, according to Citibanks public filings.
The deal is subject to regulatory approval.
Personal Loan Agreement (PLA) will continue to operate as a standalone company, but the merged company will be renamed CitiFinancial, Citibanked said.
CitiFinancial is a global credit card issuer.
It provides credit and debit card payment processing services to over 1.6 million customers in the United States, Puerto Rico and the United Kingdom.
According to the announcement, Citi Financial will continue its existing relationships with the companies leading credit card processors, and will continue operating as a company with additional assets.
“The transaction is a significant strategic acquisition that will help us expand Citi’s business in the US and in emerging markets, and the combined Company will benefit from its experience as a leader in credit card payments processing and our long-term financial and operational strategy,” said Stephen Kohn, Citigroup senior vice president and general manager.
“As a result, we expect Citi to become the leading global provider of financial and credit card solutions, providing the same quality of service and support that our customers have come to expect and trust.”
Personal Loan Agreements services include a full range of financial products and services including checking, savings, credit cards, checking and credit union account management, credit and auto loans, mortgage, home equity loans, student loans, credit card and debt management services, credit counseling, mortgage payment processing, debt management, consumer credit, and consumer finance solutions.
The company’s portfolio includes more than 80 million credit cards and more than $2.6 trillion in credit lines, according the announcement.
The combined company will include more than 100 million employees and generate annual revenue of more than 17 billion US dollars, according Citi.
Personal Loan agreements will become part of the Citibans consumer credit card portfolio, and all of the company’s existing consumer products and products and will be sold through the company.
Citi will continue the credit card operations of Personal Loan Agencies, the announcement said.
Citibank and American Express also announced a $300 million credit card acquisition and a $200 million credit union acquisition.
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