Associates First Capital Purchases KeyCorp's Credit Card Portfolio

KeyCorp expects a net gain of about $330 million.
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Associates First Capital

(AFS)

and

KeyCorp

(KEY) - Get Report

said Tuesday that Associates had agreed to acquire KeyCorp's credit card portfolio, including about $1.3 billion in receivables and nearly 600,000 active

Visa

and

MasterCard

accounts.

Financial terms of the agreement were not disclosed but KeyCorp said it expected a net gain of about $330 million. The exact amount will not be known until the transaction is completed.

The deal, which is subject to certain regulatory approvals, is expected to close by the end of January.

Under the terms of the deal, the two companies said in a joint statement that they would jointly manage KeyCorp's credit card program while Associates First Capital will take control of KeyCorp's credit card facility in Toledo, Ohio. Associates said it expects to retain the operation's 300 employees.

Based in Dallas, Associates First Capital is a finance company that provides a host of consumer and commercial services worldwide. KeyCorp of Cleveland provides banking products and services to individuals and companies throughout the U.S.

Associates First Capital closed down Tuesday 1/4, or 0.93%, at 26 9/16. KeyCorp closed down 3/16, or 0.85%, at 21 13/16.