Metris Companies, Inc. is set to be acquired by HSBC Finance Corporation in a cash transaction that values Metris at $1.594 billion.
HSBC is the nation's sixth largest issuer of MasterCard and Visa credit cards. In addition, HSBC and its subsidiaries provide middle market consumers with real estate secured loans, private label credit cards, auto finance loans, personal loans, tax refund loans and specialty insurance products.
Bobby Mehta, Chairman and Chief Executive Officer of HSBC Finance Corporation said:
"HSBC Finance is a major provider of near-prime consumer finance credit in the United States and this acquisition deepens our capabilities to serve the full spectrum of credit card customers. We are very familiar with Metris and its management team and look forward to the integration of their business within HSBC."
Metris Companies, Inc., based in Minnetonka, Minnesota, was formed in 1994 and became a public company in 1996. It is the 11th largest issuer of MasterCard and Visa cards in the U.S. and has managed receivables of about $5.9 billion. Metris issues credit cards through Direct Merchants Bank.
Chairman and Chief Executive Officer of Metris, David Wesselink, said:
"Being part of a world-class organization such as HSBC is a logical step following our successful turnaround of the business. HSBC and Metris will make a terrific combination, continuing to serve the needs of our customers."
You can learn more about this acquisition here:
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