Capital One has signed an agreement to acquire the credit card business from Cabela's, including about $5.2bn in credit card receivables and other assets and almost $5bn in associated funding liabilities.
Furthermore, Capital One Financial has signed a 10-year agreement to act as the exclusive issuing partner of co-branded credit cards to Cabela's customers.
The agreement will become effective simultaneously with Bass Pro Shops' completion of its proposed takeover of Cabela's that was announced recently.
Capital One said that the agreement includes revenue and loss sharing provisions for the ongoing credit card programme.
Capital One executive vice president for card partnerships Jimmy Cannon said: “This partnership is an appealing strategic and financial opportunity, and plays to our strengths in the retail card partnership space.
“Brand loyalty has been a hallmark for both Bass Pro Shops and Cabela's and, together, we are looking forward to building on the strength of those relationships by providing customers with a rewarding experience."
The Cabela's credit card programme transaction, including the acquisition of Cabela's credit card operations, is expected to conclude during the first half of 2017, subject to the concurrent closing of Bass Pro Shops' takeover of Cabela's, regulatory approval and the satisfaction of other customary closing conditions.