American Express Co. has completed its purchase of the European marketing service company Loyalty Partner, the company announced March 1.
AmEx paid about $585 million for the company, according to a press release. Loyalty Partners’ management holds an additional $100 million in equity interest, which places the unit’s total value at $685 million, AmEx said.
The companies first announced the proposed deal in December (
Loyalty Partners operates loyalty programs in Germany, Poland and India, and has a combined customer base of 34 million cardholders. The company, which also provides market analysis and consulting services, will be part of Amex’s International Consumer and Small Business Services Group run by Douglas Buckminster. Loyalty Partner’s CEO, Alexander Rittweger, will stay in his role.
Loyalty Partner runs a coalition program. Consumers using participating loyalty cards earn points and discounts at hundreds of merchant locations. Merchants fund the consumer offers, and Loyalty Partner earns revenue from operating the loyalty platform and by providing marketing support.
Some cards may be cobranded with a financial institution. Moving forward into new markets, AmEx may become the loyalty card cobranded partner, Ed Gilligan, AmEx vice chairman, told PaymentsSource in December.
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