Alliance Data Systems (LoyaltyOne) Spin-off Notes
May 14, 2021 Update
On Wednesday, Alliance Data Systems Corporation(ADS) announced its plans to spin off its LoyaltyOne segment which includes its Netherlands-based BrandLoyalty business and Canadian AIR MILES Rewards Program.
Alliance Data Card Services, provide payment products and digital solutions, as well as operates private-label and cobranded credit card and loyalty programs. The LoyaltyOne’s biggest revenue generator is Air Miles, and is the leading consumer targeted coalition marketing program in Canada. BrandLoyalty provides consumer marketing programs for grocers in various global regions.
The spinoff is expected to be tax-free, resulting in two independent, U.S. based, publicly traded companies, Alliance Data and “Spinco”, positioned to pursue their respective unique growth opportunities and build long-term value.Once the spin-off is completed, Alliance Data stockholders will own shares of both companies, with Alliance Data retaining a minority stake in Spinco. At the time of the spinoff, Spinco expects to complete a debt financing and dividend the net proceeds to Alliance Data.
The spin-off is anticipated to be completed by the end of this year.