Back to top

Image: Bigstock

JPMorgan (JPM) to Acquire Global Loyalty Business of cxLoyalty

Read MoreHide Full Article

JPMorgan Chase (JPM - Free Report) has agreed to acquire the Global Loyalty division of cxLoyalty Group Holdings, which includes cxLoyalty’s leading technology platforms, full-service travel agency, gift card, merchandise, and points bank businesses. However, the deal excludes cxLoyalty’s Global Customer Engagement division and other ongoing businesses.

Subject to customary closing conditions, completion of the deal is expected in the coming days. Post completion, cxLoyalty will operate as a business unit within JPMorgan.

Being a leading loyalty and technology solutions company, cxLoyalty expertizes in designing, administering and fulfilling loyalty programs, which complements JPMorgan’s reputation of providing customers with elevated and differentiated value.

The acquisition is anticipated to accelerate the solid foundation built in loyalty, including JPMorgan’s Ultimate Rewards platform. Notably, cxLoyalty’s brand and existing client relationships are expected to be led by its CEO, Todd Siegel, post-acquisition as well.

Marianne Lake, the CEO of JPMorgan’s Consumer Lending division stated, “This investment demonstrates our commitment to deliver exceptional travel benefits at-scale to our large and rapidly growing customer base. People across the globe want to vacation and travel again, and hopefully that will become a reality for many in the near future. Acquiring the travel and rewards businesses of cxLoyalty will provide enhanced experiences to our millions of Chase customers once they are ready, comfortable and confident to travel.”

Siegel stated, “JPMorgan Chase is the right partner to further invest in our leading loyalty business. This partnership allows us to strengthen and expand our technology solutions, rewards content and world class personalized customer experience for our Fortune 500 clients and their millions of customers, globally.”

Goldman Sachs & Co. LLC, a unit of Goldman Sachs (GS - Free Report) , will act as the financial advisor to cxLoyalty.

Notably, JPMorgan’s continued efforts to expand footprint remain impressive. The company remains focused on acquiring the industry's best deposit franchise and strengthening its loan portfolio.

Shares of JPMorgan have gained 33.2% over the past six months compared with 25.9% growth recorded by the industry.






Currently, the company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

A couple of other top-ranked stocks from the finance space are mentioned below.

Morgan Stanley (MS - Free Report) has witnessed an upward earnings estimate revision of 1.1% for 2020 over the past 60 days. This Zacks Rank #2 (Buy) stock has appreciated 40.7% over the past three months.

The Charles Schwab Corporation’s (SCHW - Free Report) current-year earnings estimates rose 8.8% in 60 days’ time. Further, the company’s shares have appreciated 46.1% over the past three months. At present, it carries a Zacks Rank #2.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>

Published in