Affinion Group, Inc., a global player in customer engagement solutions that enhance and extend the relationship and loyalty of millions of consumers of financial service, retail, hospitality and e-commerce companies, has signed an agreement to acquire Connexions Loyalty Travel Solutions.
Connexions is a division of Travel Leaders Group, LLC, and is known for providing leisure travel booking services as well as being a technology innovator in the administration of loyalty rewards programs.
The all-cash transaction, valued at approximately $135 million before certain purchase price adjustments, is subject to the receipt of standard regulatory approvals and is expected to close during the summer of 2010.
'The acquisition of Connexions aligns very well with our strategy, as their products are a natural extension of our abilities in the management of points programs and improves our positioning in the very competitive travel reservations market,' said Nathaniel J. Lipman, chairman and chief executive officer, Affinion, in a statement.
Lipman said that although this acquisition upgrades both the technology and functionality of the company's loyalty and travel services, the company also expects to benefit by adding a highly experienced team of travel and loyalty professionals who bring extensive knowledge and critical relationships to the table as well.
'With Connexions' services platform and Affinion's extensive relationships with leading companies in financial services and retailing, the prospects for a combined effort in improved and expanded points redemption and travel services can benefit millions of consumers,' said Michael Batt, chairman of Travel Leaders.
Back in January Affinion Group had announced the closing of its acquisition of an Italian relationship marketing solutions company from a leading Italian banking group.
The acquired company manages marketing solutions that increase loyalty and broaden the customer base of the banking group's checking account business.
Affinion's acquisition launches a long-term strategic partnership with the banking group - one of the largest in Italy - that will deliver an even more extensive portfolio of personalized, high value products and services to its customers.
Anil Sharma is a contributing editor for TMCnet. To read more of Anil's articles, please visit his columnist page.
Edited by Marisa Torrieri