UK-based digital finance company Jaja Finance, in consortium with funds affiliated with Centerbridge Partners and KKR, has agreed to acquire Bank of Ireland UK’s credit card portfolio for an initial cash consideration of around £530m.
Image: Jaja is a UK-based digital finance company. Photo: courtesy of Jaja Finance Limited.
The transaction undertaken by Jaja and the private equity firms involves the existing Bank of Ireland UK, Post Office and the AA credit card accounts.
The deal does not include Bank of Ireland UK’s Northern Ireland commercial credit card portfolio and will not impact credit cards issued by the bank in Ireland.
The acquisition by Jaja is part of a new partnership with Bank of Ireland UK, under which the former will also become the consumer credit card issuer for the latter and also its partner AA.
Bank of Ireland UK CEO Des Crowley said: “Jaja is an innovative company which shares our commitment to delivering outstanding customer service. We are proud to partner with them and bring their next generation credit card to customers across the UK.
“Today’s announcement demonstrates the Bank’s continued progress in delivering against its strategic targets for growth and transformation to 2021, as set out at its Investor Day in June 2018.”
For Jaja, the acquisition is part of its strategy to scale its credit card business in the UK by working together with other financial institutions and consumer brands. Furthermore, the acquisition is expected to consolidate on its portfolio which includes its own brand credit card, and a point of sale financing solution with British supermarket retailer 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.”
Jaja said that the transaction will not impact the customers of Bank of Ireland UK, who can use their credit cards as normal and will continue to have access to the same customer help and support service. Customers are expected to be informed before the transfer of their credit card account to Jaja next year.
In September 2018, Jaja Finance launched its new mobile-first credit card that can be managed entirely through an app.