File Photo | Photo: Discover Financial Services

Discover, the credit card giant headquartered in Lake County, announced Monday they are being purchased by Capital One for over $35 billion.

Capital One Financial and Discover Financial Services, based in Riverwoods, entered into an agreement under which Capital One will acquire Discover in an all-stock transaction valued at $35.3 billion.

“From Capital One’s founding days, we set out to build a payments and banking company powered by modern technology. Our acquisition of Discover is a singular opportunity to bring together two very successful companies with complementary capabilities and franchises, and to build a payments network that can compete with the largest payments networks and payments companies,” said Richard Fairbank, Founder, Chairman and Chief Executive Officer of Capital One.

“Through this combination, we’re creating a company that is exceptionally well-positioned to create significant value for consumers, small businesses, merchants, and shareholders as technology continues to transform the payments and banking marketplace,” Fairbank said.

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Discover’s global payments network has 70 million merchant acceptance points in more than 200 countries and territories.

Discover and Capital One are two of the largest credit card companies that are not banks first, with the exception of American Express, according to the AP.

The two companies said the acquisition adds scale and investment to enable the Discover network to be more competitive with the largest payment networks and payment companies.

“The transaction with Capital One brings together two strong brands with enhanced ability to accelerate growth and maximizes value for our shareholders, enabling them to participate in the tremendous upside of the combined company,” said Michael Rhodes, CEO and President of Discover.

“This agreement underscores the strength of our business and is a testament to the hard work of Discover employees. We look forward to a bright future as part of the Capital One family and to providing expanded opportunities for our loyal customers,” Rhodes said.

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The transaction is expected to close in late 2024 or early 2025.

U.S. Senator Elizabeth Warren said Tuesday that the deal is “dangerous and will harm working people.”

“The merger of Capital One and Discover threatens our financial stability, reduces competition, and would increase fees and credit costs for American families,” Warren said, adding that “regulators must block it immediately.”