JPMorgan Chase Acquiring Major Credit Card Rewards Business
JPMorgan Chase has agreed to purchase one of the largest third-party credit-card loyalty operators, one that it used to do business with just recently. The bank agreed Monday to acquire cxLoyalty Group, a privately-held company based in Stamford. The deal includes cxLoyalty’s leading technology platforms, full service travel agency, gift card, merchandise, and points bank businesses. cxLoyalty will operate as a business unit within JPMC, which will also take about half of the company’s 3,100 employees.
As a result of this transaction, each of cxLoyalty and the Global Customer Engagement Division, will focus on their respective market opportunities with dedicated teams and resources, enabling new avenues for growth and success. Under its new ownership, cxLoyalty will drive even greater investments in its technology, content and servicing solutions to benefit its clients and the customer experience. The Global Customer Engagement Division expects to use proceeds from the sale to meaningfully strengthen its balance sheet, enabling further investment in customer and content intelligence to deliver differentiated personalized solutions.
JPMorgan and cxLoyalty are familiar with each other. The two companies had partnered together for Chase’s popular credit-card rewards program until 2018. After that the bank switched to using Expedia, which was not very well received by cardmembers. Seems very likely that Chas will once again use cxLoyalty, with an emphasis on giving personalized recommendations based on users’ travel history.
cxLoyalty serves many of the biggest U.S. card companies, including Citigroup, Capital One and Mastercard. Overall, cxLoyalty Group says it has 3,000 clients and marketing partners that serve 70 million consumers.
“We are pleased to announce this compelling transaction, which provides significant benefits for our clients, customers, employees and other stakeholders. We have built two strong, distinct businesses, and we look forward to enhancing their focus on their unique strategic priorities and market opportunities,” said Todd Siegel, Chief Executive Officer of cxLoyalty Group Holdings said in the press release. “We anticipate the transition to be seamless. Our employees have worked tirelessly to achieve this milestone, and thanks to their efforts we are positioning both cxLoyalty and the Global Customer Engagement Division for an even stronger future.”
Mr. Siegel continued, “cxLoyalty will continue to strengthen and expand the value of relationships for its clients and their customers through its leading technology, rewards content in relevant categories including travel, gift cards and merchandise, and world-class personalized customer experience.”
Greg Miller, who will lead the Global Customer Engagement Division going forward said, “We are also pleased that the Global Customer Engagement Division will have the continued support of Elliott Management, one of our largest shareholders. With the sale, the company will accelerate its focus on driving engagement, advocacy and growth through user and content intelligence, and platform analytics. In addition, the company will have a stronger balance sheet to invest in its data intelligence growth initiatives.”