Aimia merges loyalty division with Kognitiv
Toronto-based loyalty program operator Aimia has entered into an agreement to merge its Loyalty Solutions division with Kognitiv Corporation of Waterloo, ON, a company specializing in loyalty program technology. The combined company will offer loyalty programs and related technology products and services. The deal is worth approximately $35 million, $21 million of which will be provided by Aimia shareholders, with $14 million provided by Kognitiv shareholders, in both cases in the form of convertible shares in the merged entity. Kognitiv will own 51% of the new entity, while Aimia will own 49%. The merged firms will operate as Kognitiv Corporation.
“Aimia was presented with an exciting opportunity in Kognitiv, whose proprietary AI, peer-to-peer technology allows their partners to distribute and apply rewards via [its] ‘Loyalty Capital Network’ to maximize yield and consumer lifetime value,” said Phil Mittleman, interim CEO of Aimia. “The decision to merge the businesses, each gaining traction in different markets with strong cost and business synergies, represents an outstanding opportunity and highlights the significant value that has been created in the loyalty solutions business, while greatly simplifying Aimia's corporate structure. Kognitiv's extensive investment in technology will enhance and further enable the loyalty solutions platform, and represents a significant acceleration of our combined business models.”