Barclays buys US credit card firm

Barclaycard, the UK's largest credit card provider, moved closer to making its first steps in the US market yesterday as its parent group, Barclays, snapped up Juniper Financial Corporation, the North American consumer credit firm, for $293m (£161m).

Barclaycard, the UK's largest credit card provider, moved closer to making its first steps in the US market yesterday as its parent group, Barclays, snapped up Juniper Financial Corporation, the North American consumer credit firm, for $293m (£161m).

Barclays said it intends to finance the deal, which remains subject to US regulatory appr-oval, using its existing cash resources, and intends to invest heavily in the business to expand it once the deal is completed.

Barclays said it expected Juniper - which it is buying from Canadian Imperial Bank of Commerce (CIBC), the US and Canadian financial services group - to make a significant contribution to its operating profit within three years.

The US has long been the gaping hole in Barclaycard's growing empire. As well as having a dominant position in the UK, it operates in Germany, France, Italy, Greece, Spain, Portugal, Ireland and Africa.

One of its principal strategies is to continue growing its international business to ensure it contributes as much to the overall group as Barclaycard UK.

Commenting on the deal, Gary Hoffman, Barclaycard's chief executive, said: "We believe this acquisition will provide us with low-risk entry to the largest credit card market in the world. Barclays will bring Juniper its strong balance sheet, low-cost funding and international presence. We will also bring the capabilities and corporate relationships from other parts of the Barclays Group to support Juniper's future growth plans."

This month, Barclaycard announced first-half profits of £428m, up 11 per cent on the first six months of 2003. More than 80 per cent of this was accounted for by the UK.

Juniper, based in Delaware, was founded by CIBC in 2000 and has receivables of more than $1.4bn, across 700,000 accounts.