NetSpend sold to Capital One for $700 million

dcimp3

Dormant account
Joined
Jul 27, 2007
Location
Hutto, Texas - Near Austin.
AMERICAN-STATESMAN STAFF
Tuesday, August 07, 2007

Austin-based NetSpend, which markets pre-paid debit cards nationally, was sold today to Capital One Financial Corp. for $700 million in cash, one of the highest pries ever paid for a local company.

NetSpend has more than 1.5 million customers and sells the prepaid cards at 15,000 locations, including H-E-B grocery stores. Its target customers include lower-income people who don't have traditional bank accounts but need access to credit.

NetSpend chief executive Richard Savard will continue to run the company and will become a key executive in Capital One's payments business. The company will remain in Austin.

Brothers Roy and Bertrand Sosa founded the privately held company in 1999, originally aiming at teenagers. They shifted their focus to the larger market of Americans who don't have traditional credit, a population estimated at 70 million people.

It received $60 million in backing from Oak Investment Partners and last year announced a major endorsement deal with former Longhorns star quarterback Vince Young.

Capital One, based in McLean, Va., has 725 branches in Texas and four other states.
 

winbig

Keep winning this amount.
Joined
Mar 10, 2005
Location
Pennsylvania
I used my Netspend Mastercard debit today and it worked just fine. But by the looks of that news story... it won't last long.

Joe

The gift cards don't work anymore, just the reloadables...and you're right, not for much longer.
 

usdude

Dormant account
Joined
Aug 5, 2007
Location
USA
I used my Netspend Mastercard debit today and it worked just fine. But by the looks of that news story... it won't last long.

Joe

Unbelievable!!!!!! I just ordered a Netspend card today. S.O.A.B!!!:mad:
 
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