Blackhawk Network Holdings, Inc. (NASDAQ: HAWK), a Pleasanton, Calif.–based global financial technology company, acquired CashStar, Inc., a provider of gift card commerce solutions.
The deal amounted to approximately $175m in cash.
The acquisition strengthens Blackhawk’s position in the digital gift card market and as a provider in the first-party digital gift card market, whose transaction dollar volume is estimated in excess of $100 billion.
Led by Ben Kaplan, CEO and president, CashStar provides a commerce platform that enables retailers to market, sell and distribute digital and plastic gift cards in the first-party digital card business, which is directly to consumers and businesses across a wide range of channels. With CashStar’s flexible platform, merchants can use digital and physical gift cards to engage consumers throughout the customer lifecycle, including marketing and promotions, sales and customer service. Clients include top brands like Sephora, Starbucks, The Home Depot, Uber and Walmart and distribution partners such as American Express Membership Rewards, Great Lakes Scrip, Maritz Motivation Solutions, MyCokeRewards, Raise.com and United MileagePlus X.
Following the deal, CashStar becomes part of Blackhawk’s digital and incentives businesses and Kaplan continues to manage the business and reports directly to Blackhawk’s General Manager of Digital and Incentives, David Jones.
Led by Talbott Roche, CEO and president, Blackhawk Network provides platforms and solutions that enable the management of stored value products, promotions and incentive programs in retail, ecommerce, financial services and mobile wallets. The Hawk Commerce division offers technology solutions to businesses and direct to consumers. The Hawk Incentives division offers enterprise, SMB and reseller partners an array of platforms and branded value products to incent and reward consumers, employees and sales channels.
The company operates in 26 countries.