Digital finance company Jaja has reached an agreement to acquire Bank of Ireland UK’s credit card portfolio for an initial cash consideration of around £530m.
The portfolio comprises existing Bank of Ireland UK, Post Office and the AA credit card accounts.
However, the transaction does not include the bank’s Northern Ireland commercial credit card portfolio.
Jaja will acquire the portfolio as part of a consortium of funds affiliated with Centerbridge Partners LP and KKR. It will also become the consumer credit card issuer for Bank of Ireland UK and its partner AA.
The acquisition is aligned with the company’s plan to bolster its credit card business in the UK. Jaja’s current portfolio includes a credit card and a point of sale financing solution with ASDA’s George.com.
Jaja Finance CEO Neil Radley said: “This announcement with Bank of Ireland UK is an exciting and important development in Jaja’s journey and is part of our strategy to create partnerships that will help more people embrace a simpler way of managing credit.
“Our vision is to enable a new generation of mobile-first credit card products with unrivalled functionality, service and security. We’re excited to be welcoming Bank of Ireland UK customers as cardholders.”
All credit card accounts will transfer to Jaja next year.
The deal will not affect customers of Bank of Ireland UK. They can continue to use their card normally with access to the same customer support services.