11 February 2016

Amex shells out EUR496m on Loyalty Partner

16 December 2010  |  10032 views  |  0 add to basket

American Express has agreed the EUR496 million acquisition of Loyalty Partner, a marketing services outfit operating programmes in Germany, Poland and India.

The deal - set to close in the first quarter subject to regulatory approval - consists of EUR425 million in cash up front and an extra EUR71 million equity interest that will be held by Loyalty Partner's management. Amex will then acquire that interest over the next five years at a value based on business performance.

Loyalty Partner's coalition programme sees loyalty cards distributed to millions of people who can earn points and get discounts and benefits at thousands of merchant partner locations. Merchants fund the consumer offers and Loyalty Partner earns revenue from operating the platform and providing marketing support.

The business will become part of the Amex's international consumer and small business services group, led by its president, Douglas Buckminster. Alexander Rittweger will continue as Loyalty Partner CEO.

American Express says the deal helps it boost its presence in new international markets, adding more than 34 million people to its international customer base and expanding its range of rewards and loyalty marketing services.

Ed Gilligan, vice chairman, American Express, says: "We recognise that network scale, technology, marketing expertise and customer loyalty are keys to a new generation of mobile and location-based digital marketing services. With its state-of-the-art platform, rewards that serve as a virtual currency, outstanding management team, and large customer and partner base, we think Loyalty Partner will be an excellent complement to our existing businesses."

Last month Amex outlined plans to offer cardholders reward redemptions for virtual goods and games produced by Zynga, the developer of the popular Farmville Facebook game.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

09 December, 2010
30 November, 2010
05 November, 2010
04 November, 2010
22 September, 2010
19 August, 2010
21 April, 2010
18 November, 2009
15 October, 2009

Related company news


Top topics

Most viewed Most shared
UK sets out open banking API framework
13682 views comments | 95 tweets | 87 linkedin
European mobile banking service Pocopay go...
7976 views comments | 25 tweets | 14 linkedin
Deutsche Bank calls for co-operation with...
7237 views comments | 27 tweets | 30 linkedin
How to accelerate your fintech startup
7142 views comments | 33 tweets | 9 linkedin
Wearable payments startup Fit Pay secures...
6494 views comments | 26 tweets | 9 linkedin

Featured job

up to £95K base, £190K OTE, benefits
London, UK

Find your next job