NEW YORK — American Express Co. is buying marketing services company Loyalty Partner in a $660 million deal that will boost its overseas presence.
The credit card company will pay $566 million in cash. The transaction also includes $94 million in equity interest that will be held by Loyalty Partner’s management. American Express will obtain that interest over the next five years at a value based on business performance.
American Express said Thursday that the acquisition will enhance its merchant relationships in markets such as Germany, Poland and India, where Loyalty Partner runs loyalty programs.
“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,” Ed Gilligan, American Express Vice Chairman, said in a statement.
Loyalty Partner also offers consulting services, market analysis and operating platforms to help clients grow their businesses.
The transaction adds more than 34 million consumers to American Express’ international customer base and enhances its rewards and loyalty marketing services. It also diversifies the New York-based company’s fee service revenue.
Loyalty Partner will become an American Express unit and be folded into its international consumer and small business services group, led by President Douglas Buckminster. Alexander Rittweger will remain Loyalty Partner CEO.
The acquisition is expected to close in the first quarter.