With an eye on the future of travel, J.P. Morgan Chase has agreed to acquire the rewards division of cxLoyalty Group Holdings, the companies announced in two press releases Monday (Dec. 28).
The price of the transaction was not disclosed, but the deal is expected to be complete this week, CNBC reported.
Todd Siegel, CEO of cxLoyalty Group Holdings, said in a statement that the transaction is “compelling” and will benefit all of the company’s stakeholders. CEO since 2013, Siegel will continue to lead the company following the acquisition.
“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,” Siegel said in the statement.
He added in the statement that he anticipates the transition will go smoothly and noted that the company’s staff “worked tirelessly to achieve this milestone.”
Headquartered in Stamford, Connecticut, and privately held, cxLoyalty said it serves some 70 million people across 19 countries.
“This investment demonstrates our commitment to deliver exceptional travel benefits at-scale to our large and rapidly growing customer base,” Marianne Lake, CEO of Consumer Lending at J.P. Morgan Chase, said in a press release. “People across the globe want to vacation and travel again, and hopefully that will become a reality for many in the near future.”
About 50 percent of cxLoyalty’s 3,100 employees will be tapped for a new unit, which will be part of J.P. Morgan’s retail division, according to the CNBC report. They will report to Lake.
The pandemic has taken a toll on travel, and with it, the need for travel-related rewards and loyalty programs. J.P. Morgan Chase’s Sapphire Reserve, for example, delaying an increase to annual membership fees in the hopes of avoiding card cancellations.
Microsoft’s Bill Gates has warned that he doesn’t see business travel coming back to pre-pandemic levels, but airlines are still hanging on to hope that the sector will have a strong rebound.
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