Alliance Data unit buys Hyper Marketing for $460M
DALLAS (AP) — Alliance Data Systems Corp. said Friday that it reached a deal to buy the Hyper Marketing group of companies, one of the largest privately held digital marketing services agencies in the U.S., for about $460 million.
Hyper Marketing offers a variety of services through Ryan Partnership, CatapultRPM, SolutionSet and Getmembers.com. The company is owned by private equity firm Lake Capital and its affiliates and has about 1,100 employees mainly in Chicago, San Francisco and Wilton, Conn., Alliance said. Its customers include Unilever, The Home Depot, Kellogg and Mars.
Dallas-based Alliance, which manages loyalty and rewards programs for retailers and others, said it plans to combine Hyper Marketing with Epsilon, its direct-to-consumer marketing business. The combination will help Epsilon expand its capabilities in digital marketing using mobile, social, targeted display, tablet and web development, Alliance said.
Alliance said it expects the acquisition to add scale and capabilities to Epsilon's consumer product goods, telecom, retail and financial services, while also expanding it into other key sectors such as energy, fitness, fast food restaurants and technology.
The company said it expects Hyper Marketing to generate about $300 million in revenue and boost the company's earnings in 2013. The deal is expected to close by the end of the year.
Alliance shares fell $1.90 to $139.86 in morning trading.