The purchase comes shortly after Discover sold its Goldfish credit card unit to Barclays for $70 million. The Diners Club network deal is less risky than card issuing, which is what Goldfish was.
The Diners Club brand will remain a separate business unit, even after its integration, which will take place over the next two or three years. Communications to card members will also take place after the integration. Media relations thus far have been handled by Robinson, Lerer & Montgomery. "From our perspective, growing our US acceptance was our first priority," said Kathy Beiser, VP of corporate communications for Discover Financial Services. "International acceptance has always been part of our plan, but now we're able to execute on that in a very cost-effective manner."
The purchase will cost Discover $165 million. No word on whether it's paying with cash or credit.