http://money.cnn.com/services/tickerheadlines/prn/en-sfw045a.P1.02202002100022.27101.htm Providian Signs Deal With Barclaycard for UK Credit Card Business February 20, 2002: 10:00 a.m. EST SAN FRANCISCO (PRNewswire) - Providian Financial Corporation today announced a conditional agreement to sell its UK credit card business to Barclaycard, a division of Barclays Bank PLC . Providian expects to receive a premium in the low double digits. Final closure of the transaction is expected by early second quarter. Providian's UK business represents 395 million pounds sterling ($570 million) in receivables and approximately 500,000 account relationships. The sale also includes facilities in London and Crawley as part of the agreement. "In November 2001, we announced we would seek a sale of our international businesses consistent with our five-point action plan to refocus Providian's operations and to rebuild investor confidence and shareholder value," said Joe Saunders, CEO and president of Providian Financial. "We are proud of our accomplishments and express our thanks to the staff in the UK It is gratifying that Barclays has recognized the value of our UK business and we wish them all the best in future endeavors." Commenting on the deal, Barclaycard Chief Executive Gary Hoffman said: "This is a major development for our business and underlines our position as the UK's leading credit card brand. The acquisition of Providian's UK credit card business will extend our customer base and provide us with additional expertise in key areas including information based customer management. Providian's expertise will help us move forward significantly in targeting products more specifically to customers' needs. As a result of this deal, there will be the opportunity to provide Providian customers access to a broader range of financial products which come with the Barclaycard brand." San Francisco-based Providian Financial is a leading provider of credit cards and deposit products to customers throughout the U.S.
