Alliance Data Systems Corp.,a provider of loyalty and marketing solutions, said Monday its LoyaltyOne business has agreed to acquire a 60% ownership stake in the Netherlands-based BrandLoyalty.
As per the terms, Alliance Data will acquire 60% of BrandLoyalty for about $360 million (cash plus assumed debt), and the amount can be increased via an earn-out payment based upon 2014 actual results
.The company also has the ability to acquire the remaining 40% ownership stake over a four-year period, 10% per year, based upon a predetermined valuation multiple. If specified annual earnings targets are met, Alliance Data is required to take the additional 10% ownership for the year achieved.
BrandLoyalty, founded in 1995, is a privately-held company based in Amsterdam in’s-Hertogenbosch. The company is one of the largest data-driven loyalty marketers outside of the Americas and generates annual revenue of over $400 million. Most of its business comes from Germany, France and Italy, as well as key markets in Asia.
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