Capital One announced on Monday that it plans to acquire Discover Financial Services in a $35.3 billion all-stock deal.
The two companies say they are aiming to have the deal closed by late 2024 or early 2025, subject to shareholder and regulatory approval. The acquisition would combine two of the largest credit card issuers in the country.
The deal would give shareholders of Discover 1.0192 shares of Capital One for each share they own, for a premium of 26.6%, determined by Discover’s Friday closing price of $110.49, according to the companies. After the acquisition is completed, Capital One shareholders would own 60% of the combined company, and Discover shareholders would own 40% of the company.
Capital One Chairman and CEO Richard Fairbank said in a statement on Monday that the merger will “bring together two very successful companies with
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