Great Places to Work & Acquisition Impact
Significant synergy opportunities were identified, with unmodeled upside
Modeled Impact
(2027E)
Expense¹
Description of Synergy Opportunity
•
26% of Discover operating expenses (excl. marketing) phased in over three
years
10% of Discover marketing expenses phased in over two years
$1.5B
•
Synergies largely driven by common business functions partially offset by
targeted investments
Capital One debit portfolio to be converted to Discover networks
.
Selected Capital One credit portfolios to be converted to Discover networks
Network
$1.2B
.
Assumes existing network debit and credit pricing
Conversion anticipated to begin in 2Q 2025
Revenue
Identified but not modeled
Note: 1) Operating (excl. marketing) phased in 22% / 67% / 98%/100% in 2025-2028E and excludes Student operating expenses; Marketing phased in 50% / 100% in 2025-2026E; Total expense synergy does not match to sum of page 5 due to rounding
Source: Capital One management
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