Citi today announced it has signed a definitive agreement with American Express to acquire Costco’s U.S. co-brand credit card portfolio.
The transaction is expected to close in mid-2016 at which time Citi will begin issuing Costco credit cards. Financial terms are not being disclosed.
“We are immensely pleased to have entered into an agreement to acquire the Costco portfolio and look forward to a long-term partnership with Costco and the opportunity to deliver value, convenience and seamless service to their 51 million loyal members across the country,” said Jud Linville, Chief Executive Officer, Citi Cards.
Citi is currently working with Costco to provide a new value proposition to its members. Additional information regarding the product offering will be available in the coming months.
Citi does not expect the impact of the acquisition and conversion to be material to its earnings in 2016.
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