Alliance Data signs a definitive agreement to acquire Bread®
Columbus, Ohio, October 29, 2020 / PRNewswire / – Alliance Data Systems Company (NYSE: ADS), a leading provider of data-driven marketing, loyalty and payment solutions, today announced that it has signed a definitive agreement to acquire Bread, a technology-driven digital payments company offering omnichannel solution for retailers and platform capabilities for banking partners. The transaction is valued at an estimated consideration of $ 450 million, of which approximately $ 100 million is the common stock of Alliance Data. Subject to regulatory approval and customary closing conditions, the transaction is expected to close in the fourth quarter of 2020 and is expected to be accretive no later than the third year.
The point of sale technologies provided by Bread, which include popular down payment and buy it now, pay back solutions, have been proven to grow for its customers. The addition of Bread’s technology platform expands Alliance Data’s payment offering to include installment payment products, which are expected to be available soon to Alliance Data brand partners.
Upon closing of the transaction, Alliance Data will welcome Bread’s talented group of approximately 185 employees and over 400 installment loans from Bread or Buy Now, Pay Later customers.
“As part of our broader transformation efforts, the acquisition of Bread significantly expands our digital capabilities and payment options for our partner brands and their customers, while providing another reason for retailers and brands to choose Alliance Data. to help them develop their activities ”, declared Ralph andretta, President and CEO, Alliance Data. “Bread’s payment solutions over time, along with our existing strong private label, general purpose and commercial products, will further expand our range of payment options and capabilities, providing our brand partners in all verticals another way to capitalize on the rapid growth of e-commerce channel. ”
Bread’s flexible and easily integrated payment solutions, combined with Alliance Data solutions Enhanced digital suite, enhance the digital customer experience and support increased acquisition and payment rates, delivering the best payment product to the right consumer at key points in the customer’s online shopping journey. With a diverse suite of payment products, Alliance Data will have an option for every customer need, while also appealing to younger, digital-native consumers.
“With the timing of the holiday season approaching, the COVID-19 pandemic has accelerated the adoption of digital technologies, and perhaps nowhere as significantly as in financial services and payments,” said Val Greer, Commercial Director, Alliance Data. “Digital payment offerings such as buy now, pay later appeal to the tech-savvy young shoppers of our brand partners looking for convenience, security and choice, and create more opportunities for retailers to boost sales and brand loyalty among this coveted demographic. ”
“At Bread, we have always strived to reinvent payments in the digital age, and we are excited about the opportunity to provide Alliance Data with our technology, support and expertise in digital development through this agreement,” said declared Josh Abramowitz, CEO, Pain. “We look forward to helping an industry leader like Alliance Data grow their business by delivering improved solutions to their customers and their customers.
JP Morgan acted as financial advisor and Davis polk as legal counsel to Alliance Data during the transaction. Centerview Partners LLC acted as financial advisor and Simpson Thacher & Bartlett acted as legal advisor to Bread during the transaction.
About Alliance data
Alliance data® (NYSE: ADS) is a leading provider of data-driven marketing, loyalty and payments solutions serving large consumer-driven industries. The company creates and deploys personalized solutions that measurably change consumer behavior while driving the growth and profitability of some of today’s best-known brands. Alliance Data helps its partners create and increase customer loyalty across multiple touchpoints using traditional, digital, mobile and emerging technologies. A FORTUNE 500 and S&P MidCap 400 company based in Columbus, Ohio, Alliance Data is made up of companies that together employ more than 8,500 associates in more than 50 locations around the world.
Alliance Data Card Services business is a provider of industry-leading private label, co-brand and professional credit card programs. LoyaltyOne® owns and operates the AIR MILES® Reward program, from Canada the most recognized loyalty program, and Netherlands-based Brand loyalty, a global provider of tailor-made loyalty programs for grocers. You can find more information about Alliance Data at www.AllianceData.com.
Bread is a technology-driven payments company that partners with retailers to customize payment options for their customers. Bread integrates directly with retailers on their ecommerce site and gives them a unique platform that allows them to offer more ways to pay over time. Bread’s comprehensive funnel recommendation engine delivers the right options at the right time, enabling retailers to sell more, improve conversion, and increase average order value. Bread is backed by leading venture capital firms including Bessemer Venture Partners, Menlo Ventures, Kinnevik and RRE Ventures. For more information, please visit painpayments.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by ‘use of words such as “believe”, “expect”, “anticipate”, “estimate”, “intend”, “plan”, “plan”, “probably”, “can”, ” should ”or other similar words or phrases matter. Likewise, statements that describe our business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. Examples of forward-looking statements include, without limitation, statements we make regarding and directions we give regarding our anticipated operating or financial results, the launch or completion of strategic initiatives, declarations of dividends future and future economic conditions. , including, but not limited to, fluctuating exchange rates, market conditions and the impacts of COVID-19 related to relief measures for affected borrowers and depositors, labor shortages work due to quarantine, reduced customer demand, disruption of the supply chain for our rewards providers and disruptions in the airline or travel industries.
We believe our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties which could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this press release, and no guarantees can be made. be given that our expectations will turn out to be correct. These risks and uncertainties include, but are not limited to, the factors set out in the Risk Factors section of our Annual Report on Form 10-K for the most recently ended financial year, which may be updated in Item 1A of, or elsewhere. in, our quarterly reports on Form 10-Q filed for periods subsequent to this Form 10-K. Our forward-looking statements speak only as of the date they were made, and we assume no obligation, other than as required by applicable law, to update or revise forward-looking statements, whether as a result of new information, subsequent, anticipated events or unforeseen or other circumstances.
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SOURCE Alliance Data Systems Corporation