Citi group has inked an agreement with Capital One to purchase portfolio of Best Buy private label and co-branded credit card accounts, with current loan balances of about $7bn.
Additionally, the US bank is planning to enter into a strategic agreement with Best Buy to issue and manage the branded cards in the country.
Further terms of both the deals have not been disclosed.
Subject to customary closing conditions, the sale of the loans to Citi and early termination of the Best Buy partnership with Capital One are expected to be completed during the third quarter of 2013.
Commenting on the acquisition, Citi retail services CEO Bill Johnson said that the acquisition will provide another premier retail franchise and high-quality card portfolio as well as boost its position as a market leader in North America.
Serving almost 90 million accounts, Citi Retail Services offers consumer and commercial credit card products, services, and retail solutions to national and regional retailers across North America.
Headquartered in McLean, Virginia, Capital One Financial manages two subsidiaries including Capital One, N.A and Capital One Bank financial products and services to consumers.