cxLoyalty Group Holdings, Inc. (“cxLoyalty Group Holdings”) today announced that it has entered into a definitive agreement to sell its Global Loyalty division (“cxLoyalty”) to JPMorgan Chase & Co. (NYSE: JPM) (“JPMC”). The deal includes cxLoyalty’s leading technology platforms, full service travel agency, gift card, merchandise, and points bank businesses. cxLoyalty will operate as a business unit within JPMC. The transaction excludes cxLoyalty Group Holdings’ Global Customer Engagement division and other ongoing businesses (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, enabling new avenues for growth and success. Under its new ownership, cxLoyalty will drive even greater investments in its technology, content and servicing solutions to benefit its clients and the customer experience. The Global Customer Engagement Division expects to use proceeds from the sale to meaningfully strengthen its balance sheet, enabling further investment in customer and content intelligence to deliver differentiated personalized solutions.
“We are pleased to announce this compelling transaction, which provides significant benefits for our clients, customers, employees and other stakeholders. We have built two strong, distinct businesses, and we look forward to enhancing their focus on their unique strategic priorities and market opportunities,” said Todd Siegel, Chief Executive Officer of cxLoyalty Group Holdings. “We anticipate the transition to be seamless. Our employees have worked tirelessly to achieve this milestone, and thanks to their efforts we are positioning both 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 their customers through its leading technology, rewards content in relevant categories including travel, gift cards and merchandise, and world-class personalized customer experience.”
Greg Miller, who will lead the Global Customer Engagement Division going forward 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 on driving engagement, advocacy and growth through user and content intelligence, and platform analytics. In addition, the company will have a stronger balance sheet to invest in its data intelligence growth initiatives.”
Upon closing of 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 going forward. 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 enterprise.
The transaction is expected to close in the coming days, subject to customary closing conditions.
Goldman Sachs & Co. LLC is acting as financial advisor and Davis Polk & Wardwell LLP is acting as legal advisor to cxLoyalty Group Holdings. J.P. Morgan Securities LLC is acting as financial advisor and Wachtell, Lipton, Rosen & Katz is acting as legal advisor to JPMC.
About cxLoyalty Group
cxLoyalty Group is a leading loyalty and customer engagement solutions company servicing 70 million consumers with approximately 3000 client & marketing partner relationships and over 40 years of experience. We design, administer and fulfill loyalty and customer engagement programs that strengthen and expand the value of relationships for brands around the globe, including many of the largest and most respected companies in the financial services, retail, travel, and telecom industries. Based in Stamford, Conn., cxLoyalty has approximately 3100 associates in 19 countries. For more information, visit www.cxloyalty.com.