On Monday, Discover announced that it had reached a deal with Citigroup to purchase Diners Club International for $165 million. This acquisition should eventually result in increased global acceptance of Discover, enabling Discover cardholders to use their cards at international merchants that accept Diners Club. In turn, international Diners Club cardholders would be able to use their Diners Club card at merchants who accept Discover in North America. Discover expects that integration of the networks would take two to three years.

Currently Discover is only accepted in North and Central America, the Carribbean and China, so adding the Diners Club network will significantly expand its global reach and make it a bigger player among upscale consumers and business travelers.