- JPMorgan Chase & Co. (NYSE: JPM) recently announced that it entered into a definitive agreement to buy the Global Loyalty division from cxLoyalty Group. These are the details.
JPMorgan Chase & Co. (NYSE: JPM) recently announced that it entered into a definitive agreement to buy the Global Loyalty division from cxLoyalty Group. This deal includes cxLoyalty’s leading technology platforms, full-service travel agency, gift card, merchandise, and points bank businesses.
cxLoyalty is going to operate as a business ss unit within JPMC. And the transaction excludes cxLoyalty Group Holdings’ Global Customer Engagement division and other ongoing businesses (known as “the Global Customer Engagement Division”).
With this deal, 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. And under its new ownership, cxLoyalty will drive even greater investments in its technology, content, and servicing solutions to benefit its clients and customer experience.
The Global Customer Engagement Division expects to use the funding from the sale to meaningfully strengthen its balance sheet, enabling further investment in customer and content intelligence to deliver differentiated personalized solutions.
Upon closing of the transaction, Todd Siegel – who has been CEO of cxLoyalty Group Holdings since 2013 – will transition to JPMC as CEO of cxLoyalty.
And Greg Miller, Chief Financial Officer and Chief Operating Officer of cxLoyalty Group Holdings, will lead the Global Customer Engagement Division going forward. 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 deal is expected to close in the coming days, subject to customary closing conditions.
KEY QUOTES:
“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.”
“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.”
– Todd Siegel, Chief Executive Officer of cxLoyalty Group Holdings
“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.”
– Greg Miller, who will lead the Global Customer Engagement Division going forward
