Alliance Data Systems Corporation (NYSE: ADS), a Columbus, Ohio-based provider of data-driven marketing, loyalty and payment solutions, completed the acquisition of Lon Inc., a technology-driven digital payments company operating under the trademark Bread.
The acquisition was completed under the terms of the previously announced definitive agreement entered into on October 28, 2020.
Alliance Data’s aggregate consideration for this acquisition, valued at approximately $450m at signing and subject to customary closing purchase price adjustments, consisted of cash and approximately 1.9 million shares of Alliance Data common stock, with a portion of the cash consideration deferred for a period of one year.
Bread offers an omnichannel solution for retailers and platform capabilities to bank partners.
Alliance Data gains Bread’s flexible technology platform and will soon offer to its brand partners installment and buy now, pay later solutions at the point-of-sale. Able to integrate with online, mobile and brick and mortar shopping environments, the platform gives Alliance Data’s brand partners the tools to drive increased spend and loyalty as customers increasingly adopt digital payments.
Additionally, Alliance Data will add Bread’s group of employees, many of whom are specialized technology and product engineers. These new Alliance Data associates bolster Alliance Data’s agility, fintech knowledge and skillsets to support the innovation and development of new and expanded payment solutions. Bread will maintain its Tampa, Fla., customer care center and continue supporting its 400+ existing clients from its Innovation Center in New York City.
Led by Ralph Andretta, president and chief executive officer, Alliance Data is a provider of data-driven marketing, loyalty and payment solutions serving large, consumer-based industries. The company creates and deploys customized solutions that measurably change consumer behavior while driving business growth and profitability for some of today’s most recognizable brands. Alliance Data consists of businesses that together employ over 8,500 associates at more than 50 locations worldwide. Alliance Data’s Card Services business is a comprehensive provider of private label, co-brand, general purpose and business credit card programs, digital payments, including Bread, and Comenity-branded financial services. LoyaltyOne owns and operates the AIR MILES Reward Program, Canada’s most recognized loyalty program, and Netherlands-based BrandLoyalty, a global provider of tailor-made loyalty programs for grocers.