BrandLoyalty: merger brings global expansion and greater customer benefits
The recent combination of BrandLoyalty, the Den Bosch-based provider of loyalty programs in Europe and Asia, with U.S. Alliance Data Systems (NYSE: ADS) has created a leading worldwide loyalty supplier program provider active on all important continents. The strategic tie-up resulted from the acquisition of Brand Loyalty by Alliance Data Systems as announced in October 2013, in which ING acted as advisor to BrandLoyalty.
The acquisition supports ADS’ geographical expansion and enables it to benefit from BrandLoyalty’s expertise. At the same time, BrandLoyalty’s customers will now benefit from ADS’ expertise, especially in North America.
BrandLoyalty identifies consumer spending patterns by using demographic information from data firms. The data is combined with the retailer’s data to establish a market share benchmark and identify specific target segments within the client’s customer base that are most likely to respond. A tailored promotional loyalty program is then created to reward key customers based on their spending. The business is privately-held with 400 associates in 14 offices and more than USD 400 million in annual revenues. It generates more than half of its sales from Germany, France and Italy in Europe, as well as in key markets in Asia. It is considered one of the most important providers of its kind in its markets with major retail clients such as Tesco, Lidl and Delhaize.
The acquirer, ADS, is North America’s largest and most comprehensive provider of transaction-based and data-driven marketing and loyalty solutions. The company aims to measurably change consumer behaviour while driving business growth and profitability for some of today’s most recognisable brands. Headquartered in Dallas, the company and its three businesses employ approximately 11,000 associates in more than 70 locations worldwide.