Summary
Capital One Financial Corporation (COF) announced on November 15, 2004, that it has entered into a significant services agreement with First Data Corporation, effective November 8, 2004. This agreement involves transitioning approximately 90% of Capital One's volumes for certain production services, including statement printing, card embossing, and payment processing, to First Data. The primary objectives behind this strategic outsourcing initiative are to enhance service levels, bolster disaster recovery and business continuity capabilities, and importantly, reduce operating expenses and capital costs. This move is expected to streamline operations and improve financial efficiency by leveraging First Data's specialized infrastructure and expertise. The transition will occur in phases over eight months and the agreement has an initial term of five years, with flexible termination clauses for Capital One.
Key Highlights
- 1Capital One entered a material definitive agreement with First Data Corporation on November 8, 2004.
- 2Approximately 90% of specific production service volumes will be transitioned to First Data.
- 3Key services affected include statement/letter printing, card embossing, mail handling, and payment remittance processing.
- 4The company expects to improve service levels, enhance disaster recovery, and reduce operating and capital costs.
- 5The transition of services will be phased in over an eight-month period.
- 6The agreement has an initial term of five years with flexible termination options for Capital One.
- 7This filing was made on November 15, 2004, with the earliest event reported on November 8, 2004.