JPMorgan Chase acquires cxLoyalty’s global loyalty division

By Pavithra R

JPMorgan Chase (JPMC) has entered into a definitive agreement to acquire the global loyalty division of cxLoyalty Group Holdings, a private company based in Stamford, Connecticut that provides customer engagement and loyalty programs.

Under the deal, cxLoyalty will operate as a business unit within JPMC. The transaction includes cxLoyalty’s leading technology platforms, full-service travel agency, gift card, merchandise, and points bank businesses and excludes cxLoyalty Group Holdings’ Global Customer Engagement division and other ongoing businesses (collectively the Global Customer Engagement Division).

The Global Customer Engagement Division is planning to use proceeds from the sale, to strengthen its balance sheet, accelerate its focus on driving engagement, advocacy and growth through user and content intelligence and platform analytics.

“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. 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,” said Todd Siegel, Chief Executive Officer of cxLoyalty Group Holdings. 

“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,” added Mr Siegel.

As a result of the transaction, cxLoyalty and the Global Customer Engagement Division will focus on their respective market opportunities with dedicated teams & resources, enabling new avenues for growth and success. The new ownership is expected to drive greater investments in its technology, content and servicing solutions to benefit its clients and enhance customer experience.

“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,” said Greg Miller, who will lead the Global Customer Engagement Division going forward.