American Express purchases Loyalty Partner

American Express has announced that it is going to buy Loyalty Partner, a company best known for the loyalty program it operates in Germany, Poland and India. Loyalty Partner also provides market analysis, operating platforms and consulting services that help merchants grow their businesses. 

The acquisition will deepen American Express’ merchant relationships in select international markets, add more than 34 million consumers to the company’s international customer base and expand its range of rewards and loyalty marketing services.  

Loyalty Partner will become a subsidiary of American Express and will be part of the company’s International Consumer and Small Business Services group, led by its President, Douglas Buckminster. Alexander Rittweger will continue as Chief Executive Officer of Loyalty Partner. 

The purchase, which is subject to regulatory approval, is expected to close in the first quarter of 2011. The transaction, which values the company at €496 (US $660) million, consists of an upfront cash purchase price of €425 (US $566) million and an additional €71 (US $94) million equity interest that will be held by Loyalty Partner’s management.  American Express will acquire that interest over the next five years at a value based on business performance.

Source: American Express