Taking a step into mainstream banking, Internet credit card company NextCard Inc. signed a definitive
agreement to acquire Textron National Bank, a subsidiary of Textron Financial Corp. Terms of the deal were not disclosed.
Upon completion of the transaction Textron National Bank will change its
name to NextBank NA.
“The formation of NextBank is a natural progression in our strategy to
deliver online consumer credit, giving NextCard the ability to originate
credit card accounts for our own account,” said Jeremy Lent, chief executive
officer of NextCard.
NextCard currently has approximately $450 million in funding capacity through
conduit funding arrangements with Barclays Capital and ING Barings.
The transaction will not have a material impact on earnings per share for
NextCard, the company said. Total assets of Textron National Bank at the
closing will consist of less than $3 million in cash and other short-term
securities. The acquisition is subject to the approval of banking regulators.
Since its launch in December 1997, over two million people have applied for the
NextCard Internet Visa. The company offers a Double Rewards program, complete
GoShopping! tools, personalized PictureCard design, and a one-click digital
Wallet.
