Eastside Business News at EastsideBusiness.com

Washington Mutual Completes Acquisition of Providian Financial

Washington Mutual, Inc. announced on October 3rd that the company has completed its acquisition of Providian Financial in a stock and cash transaction valued at approximately $6.1 billion. For each share of Providian common stock, Providian stockholders will receive 0.4005 shares of Washington Mutual common stock and $2.00 in cash.

The transaction is expected to be accretive within a year on both a GAAP and cash basis.

The acquisition brings together two of the nation's leading retail financial services companies focused on serving middle market consumers, and strengthens Washington Mutual's leadership position in the middle market customer segment. Providian CEO Joseph Saunders will continue to lead the credit card business from San Francisco as president of the new Washington Mutual Card Services Division reporting directly to Steve Rotella, Washington Mutual's president and chief operating officer. Washington Mutual Card Services becomes the company's fourth major business unit.

"We're excited to welcome the Providian team to the Washington Mutual family," said Kerry Killinger, chairman and chief executive officer of Washington Mutual. "This is a transformational moment in the history of both companies and one that we believe will result in great things for our shareholders."

Washington Mutual has finalized plans for the introduction of a Washington Mutual-branded credit card over the next year, including a mid-October direct-mail marketing campaign to its customers. Providian customers will continue to use their existing Providian credit card as well as to utilize the same customer service contact telephone numbers.