RIVERWOODS, Ill. - SPS Transaction Services Inc. has completed its previously announced acquisition of credit card receivables from Tandy Corp., the parent of Radio Shack.
SPS and its Hurley (S.D.) State Bank affiliate purchased $391 million of receivables and other assets and assumed $231 million of securitized receivables. The organization will also issue cards bearing the Radio Shack and Tandy brands through a separate agreement.
SPS late last year took over two other Tandy credit card portfolios - Computer City and Incredible Universe - as the Texas-based electronics retailer embarked on a major restructuring.
Robert Wieseneck, SPS president, said those acquisitions have resulted in "strong add-on card sales . . . which have contributed to an increase in first-quarter receivables that differs from our historical post-holiday paydown."
At yearend, SPS reported it had 3.9 million accounts and $1.1 billion in card loans, including a securitized portion.