Loyalty marketing solutions provider Alliance Data Systems Corp. has agreed to buy Conversant Inc for $2.3 billion, strengthening its digital marketing arm with ad distribution and measurement technology.
Each $35 share will comprise of $16.80 in cash and in stock based on a fixed exchange ratio, according to Alliance Data. This represents a 31% premium to Conversant’s stock on the Nasdaq before its trading was halted yesterday.
Conversant, which focuses on personalisation and affiliate marketing, and owns performance marketing company CJ Affiliate, will become part of Epsilon, Alliance Data's online marketing unit that has partnered with Twitter and Facebook to help advertisers better target customers through loyalty programs.
Alliance Data has said it expects Epsilon to generate around $2 billion in revenue following the acquisition. The deal is currently subject to regulatory approval but expected to close by the year's end.