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Capital One plans to buy Discover Financial Services in a deal that would marry two of the largest credit-card companies in the U.S.
The all-stock deal could be announced Tuesday, according to people familiar with the matter. Discover has a market value of about $28 billion, and the takeover would be expected to value it at a premium to that.
Capital One is making a big bet at a booming time in the credit-card sector. More consumers are moving from paying with cash to cards as a result of generous rewards programs and the digitization of commerce—a transition that accelerated with the pandemic. A recent increase in credit-card-debt has provided a further boost to issuers.
Buying Discover would give Capital One, a credit-card lender with a market value of a little over $52 billion, a network that would vastly increase its power in the payments ecosystem.
The all-stock deal could be announced Tuesday, according to people familiar with the matter. Discover has a market value of about $28 billion, and the takeover would be expected to value it at a premium to that.
Capital One is making a big bet at a booming time in the credit-card sector. More consumers are moving from paying with cash to cards as a result of generous rewards programs and the digitization of commerce—a transition that accelerated with the pandemic. A recent increase in credit-card-debt has provided a further boost to issuers.
Buying Discover would give Capital One, a credit-card lender with a market value of a little over $52 billion, a network that would vastly increase its power in the payments ecosystem.
