This is over the same period last year
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As part of its efforts to increase its international presence, American Express is to buy German marketing company Loyal Partner for up to €496m
The credit card company announced the acquisition today, stating it will add about 34 million customers.
“The acquisition is part of American Express’ drive to build and diversify its fee service revenues and expand its international presence,” said AmEx.
In turn, Loyal Partner will benefit from joining American Express as it will see an accelerated entry into new markets.
The German company is best-known for the loyalty program it operates in Germany, Poland and India.
“The loyalty coalition model is growing rapidly in many parts of the world,” said Ed Gilligan, American Express vice chairman. “Increasingly, consumer decisions about where to shop and how to pay are based on loyalty offerings, and Loyalty Partner is a premier player in this space.”
Under the deal, Loyalty Partner will become a subsidiary of American Express and will be part of the company’s International Consumer and Small Business Services group. It will be led by AmEx’s Douglas Buckminster and Alexander Rittweger will continue as CEO.
American Express said the deal is expected to close in the first quarter of 2011. It will pay €425m in cash and will buy an equity interest valued at €71m over the next five years, based on performance.