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Discover Financial Services unit Discover Bank has closed the acquisition of Student Loan Corp. for an aggregate consideration of $600 million.
According to a Form 8-K filed Jan. 3, Discover Bank received a purchase price closing adjustment in the form of a cash payment of about $234 million by Citigroup Inc.'s Citibank NA, 80% owner of Student Loan before the merger, which resulted in a net cash outlay by Discover Bank of approximately $366 million for the acquisition.
Each outstanding common share of Student Loan was converted into the right to receive $30 in cash, without interest, at the effective time of the merger, which was 11:59 p.m. ET on Dec. 31, 2010.
Before the merger was effected, Student Loan completed two related asset sale transactions, one with SLM Corp. under which it sold about $27 billion of its federal student loans and related assets,...