Capital One Financial Corp. (COF) and NetSpend Holdings, Inc. on Monday announced the termination of their previously announced acquisition agreement by mutual consent.
Instead of the acquisition, they have now entered into a Letter of Intent to expand their existing strategic relationship.
Capital One intends to acquire a minority interest in NetSpend, a leading retail marketer of prepaid debit cards, along with an option to purchase additional shares of the company. It is expected that a Capital One representative will join the NetSpend Board of Directors.
Capital One and NetSpend plans to jointly pursue the distribution of prepaid card products through a variety of mainstream retail channels.
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