Alliance Data systems has agrees to acquire Conversant for $2.3 billion. The purchase will reportedly allow Alliance to form an end-to-end marketing service, reports The Wall Street Journal.
Previously known as ValueClick, Conversant specialized in targeted marketing that matches companies with their natural consumer base and their individual needs. In 2013 the company posted a value of $573 million, and is expected to add as much as $.75 to Alliance’s core earnings per share.
Earlier this year, Alliance bought SET Media, a video creation service. Along with newly acquired Conversant it will function as part of Alliance Data’s Epsilon business.
Alliance Data operates loyalty and rewards programs for private-label cards and posted revenue of about $4.3 billion last year. Its’ market value is around $14 billion. It currently operates programs for retailers such as Ann Taylor, Victoria Secret and Pottery Barn.
The proposed buyout has been approved by the boards of both companies and pending regulatory approval will close by the end of 2014. The purchase price will be made up of about 48% in cash, with the remainder in stock.
