The addition of BlueTarp will expand Capital One’s partnerships offerings and enhance service features for co-brand and private-label credit card clients
Capital One announced today the entry into a definitive agreement to acquire BlueTarp Financial, a leading business-to-business trade credit financing company headquartered in Portland, Maine.
BlueTarp delivers customized business-to-business credit management programs to merchants and small- to medium-sized companies. It allows for a seamless purchase-to-payment process featuring a combination of accounts receivable management tools, cash flow and risk protection, with optional collections and customer support. These programs will provide additional servicing capabilities and broader financial offerings for Capital One’s co-brand and private-label credit card partnerships clients.
“BlueTarp offers a unified purchase-to-payment system and fosters strong banking relationships with large merchants and small- to medium-sized businesses alike,” said Buck Stinson, senior vice president of Card Partnerships at Capital One. “We are looking forward to integrating BlueTarp and its innovative technology and services into Capital One’s card partnerships business, enhancing our service capabilities for existing and future partners.”
BlueTarp’s clients include national and regional business-to-business suppliers across a variety of industries including office supplies, hardware, home building, building materials, lumber and supplies, tools and equipment and many more. Founded in 1998, BlueTarp was founded to give building material suppliers a superior credit program that delivers cash flow so that they could invest in their business and grow sales while protecting themselves from risk.
“As an emerging leader in the business-to-business credit management industry, we were eager to identify a like-minded partner who could help us transform this sector on a much larger scale,” said Scott Simpson, CEO of BlueTarp. “We look forward to leveraging our fully developed trade credit technology platform and delivering significant value to Capital One’s existing and future partners.”
Portland, Maine will continue to be home for BlueTarp, which will continue to provide enterprise merchant partners with the same great products and services that they receive today.
Terms of the transaction were not disclosed. The transaction is expected to close in the third quarter of 2019, subject to customary closing conditions. Wachtell, Lipton, Rosen & Katz acted as legal advisor to Capital One in connection with the transaction. Evercore acted as financial advisor to BlueTarp, and Goodwin Procter LLP acted as its legal advisor.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $255.1 billion in deposits and $373.2 billion in total assets as of March 31, 2019. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.
About BlueTarp Financial
BlueTarp Financial delivers customized, branded B2B trade credit programs for enterprise, small and medium sized merchants across the United States. Based in Portland, Maine, BlueTarp provides merchants with improved cash flow, protection from credit risk, tools to grow sales, and a proprietary tech platform that enhances customer experience
Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Such forward-looking statements include, but are not limited to, statements about the projected impact and benefits of the acquisition by Capital One of BlueTarp, including Capital One’s plans, objectives, expectations and intentions and other statements that are not historical facts. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including among others those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2018, and the following factors: the possibility that Capital One may not fully realize the projected benefits of the transaction; changes in the anticipated timing for closing the transaction; business disruption during the pendency of or following the transaction; diversion of management time on transaction-related issues; and the reaction of customers and other parties to the transaction. Forward-looking statements speak only as of the date they are made, and Capital One assumes no duty to update forward-looking statements.