Citi announced that it successfully completed on September 6 the acquisition from Capital One Financial Corp. of Best Buy’s U.S. credit card portfolio and the conversion of the portfolio to Citi’s systems. Citi Retail Services, the premier provider of credit card products, services and solutions for North America retailers, will manage the portfolio going forward. The portfolio currently totals more than $6 billion in receivables.
“Executing a conversion of this size in less than seven months is unheard of in the industry,” said Citi Retail Services CEO Bill Johnson. “The success of this endeavor speaks not only to the value we place on Best Buy as a client, but to the commitment and expertise of our people.”
“The transition of Best Buy’s card portfolio to Citi Retail Services reflects our determination to provide outstanding service and financing offers for our customers,” said Mark Williams, president, Best Buy Financial Services. “As part of this transition Best Buy will also be able to further strengthen our customer loyalty program – which is already among the largest and best programs of its kind.”
The addition of more than $6 billion in receivables strengthens Citi Retail Services’ position as a leading provider of private label and co-branded card products to U.S. retailers and their customers. The business services millions of accounts for a number of iconic brands, including ExxonMobil, Macy’s, Sears, Shell, and The Home Depot.
The long-term strategic agreement between Citi and Best Buy, the global leader in consumer electronics, was originally announced in February of this year. Citi does not currently expect the impact of the agreement, acquisition and conversion to be material to its earnings in 2013.