Capital One to Acquire Discover in $35.3 Billion Deal

Capital One has announced its plans to acquire Discover, a financial services company, in a $35.3 billion all-stock deal. This move will merge two of America's leading credit card companies. As per the terms of the deal, Discover shareholders will receive 1.0192 Capital One shares for each Discover share, representing a 26.6 percent premium over Discover's Friday closing price.

The Wall Street Journal reported that Capital One intends to keep the Discovery brand.

Capital One's founder, Chairman and Chief Executive Officer Richard Fairbank, stated:

Our acquisition of Discover is a singular opportunity to bring together two very successful companies with complementary capabilities and franchises, and to build a payments network that can compete with the largest payments networks and payments companies.

Through this combination, we're creating a company that is exceptionally well-positioned to create significant value for consumers, small businesses, merchants, and shareholders as technology continues to transform the payments and banking marketplace.

Following the completion of the acquisition, Capital One shareholders will hold approximately 60 percent of the combined company, with Discover shareholders owning the remaining 40 percent.  The deal is expected to close late 2024 or early 2025.