Nov. 5, 2013
/PRNewswire/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced that it has reached an agreement, subject to customary closing conditions, for its LoyaltyOne business to take a 60% ownership stake in
-based BrandLoyalty. Headquartered near
in's-Hertogenbosch, BrandLoyalty is one of the largest and most successful data-driven loyalty marketers outside of the Americas.
Founded in 1995, privately-held BrandLoyalty has grown from a small presence in loyalty marketing to a firm with 400 associates in 14 offices generating more than
in annual revenues. Its traditional core loyalty offerings were further expanded into the digital space through its 2012 acquisition of Ice Mobile, a leading mobile applications player. BrandLoyalty generates more than half of its sales from
, as well as key markets in
. Additional new markets are being developed, including
and China. Alliance Data believes that BrandLoyalty's organic growth rates of 8% top line and 10% EBITDA are sustainable for the long-term and consistent with Alliance Data's model.
BrandLoyalty is a leader in transactional and emotional loyalty creating immediate changes in consumer behavior through promotional campaign-driven loyalty programs. These programs are offered through leading grocers across
, and more than 2,000 individual programs have been executed since its founding.
For each program, the first step requires an understanding of the spending trends around the client's trade area. BrandLoyalty begins by identifying spend patterns among local market consumers by using demographic information that it obtains from leading data firms. The market data is then combined with the grocer's data to establish a current market share benchmark for the grocer and to identify specific target segments within the grocer's customer base most likely to respond.