STAMFORD, Conn., December 28, 2020 / PRNewswire / – cxLoyalty Group Holdings, Inc. (“cxLoyalty Group Holdings”) today announced that it has entered into a definitive agreement to sell its Global Loyalty (“cxLoyalty”) division to JPMorgan Chase & Co. (NYSE: JPM) (“JPMC” ). The business includes cxLoyalty’s leading technology platforms, full-service travel agency, gift card, merchandise and points bank business. cxLoyalty will operate as a business unit within JPMC. The transaction excludes the Global Customer Engagement division of cxLoyalty Group Holdings and other businesses in progress (collectively, “the Global Customer Engagement Division”).
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, allowing new paths for growth and success. Under its new ownership, cxLoyalty will drive even greater investments in its technology, content and services solutions to benefit its customers and the customer experience. The Global Customer Engagement Division expects to use the proceeds of the sale to significantly strengthen its balance sheet, allowing for more investment in customer intelligence and content to provide differentiated personalized solutions.
“We are pleased to announce this attractive transaction, which offers significant benefits to our customers, customers, employees and other interested parties. We have built two strong and distinct businesses and hope to improve their focus on their unique strategic priorities and market opportunities,” said Todd Siegel, CEO of cxLoyalty Group Holdings. “We anticipate that the transition will be seamless. Our employees have worked tirelessly to achieve this milestone and, thanks to their efforts, we are positioning 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 customers through its leading technology, reward content in relevant categories, including travel, gift cards and merchandise, and personalized experience of world class for the customer. “
Greg Miller, who will lead the Global Customer Engagement Division in the future, 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. in driving engagement, advocacy and growth through user intelligence and content and platform analytics. In addition, the company will have a stronger balance sheet to invest in its data intelligence growth initiatives. ”
Leadership
After closing the transaction, Mr. Siegel, who has been CEO of cxLoyalty Group Holdings since 2013, will transition to JPMC as CEO of cxLoyalty.
Greg Miller, Chief Financial Officer and Chief Operating Officer of cxLoyalty Group Holdings, will lead the Global Customer Engagement Division in the future. Mr. Miller has over 18 years of experience with cxLoyalty Group Holdings and is responsible for all financial and operational functions, as well as corporate strategy and capital allocation for new business initiatives across the company.
The transaction is expected to close in the next few days, subject to customary closing conditions.
Advisers
Goldman Sachs & Co. LLC is serving as a financial advisor and Davis Polk & Wardwell LLP is serving as legal advisor to cxLoyalty Group Holdings. JP Morgan Securities LLC is serving as a financial advisor and Wachtell, Lipton, Rosen & Katz is serving as a legal advisor to JPMC.
About cxLoyalty Group
CxLoyalty Group is a leader in customer loyalty and engagement solutions, serving 70 million consumers, with approximately 3,000 customer and marketing partner relationships and over 40 years of experience. We design, manage and carry out customer loyalty and engagement programs that strengthen and expand the value of relationships for brands worldwide, including many of the largest and most respected companies in the financial services, retail, travel and telecommunications sectors. Based in Stamford, Conn., cxLoyalty has approximately 3100 members in 19 countries. For more information, visit www.cxloyalty.com.
SOURCE cxLoyalty Group, Inc.
Related Links
cxloyalty.com