Tags: Alliance | Data | Buy | Conversant

Alliance Data to Buy Conversant for $2.3 Billion

Thursday, 11 Sep 2014 06:11 PM

Credit card processor Alliance Data Systems Corp. said it will buy Conversant Inc. for about $2.3 billion in cash and stock to boost its digital marketing business.

The $35 per share offer comprises $16.80 in cash and the rest in stock, based on a fixed exchange ratio, Alliance Data said.

The deal was announced after regular stock market trading ended Thursday. In aftermarket trading, shares of Conversant, formerly known as ValueClick, surged 32 percent to $35.17, after closing little changed at $26.71. Alliance shares were up 2.4 percent in extended trading after falling by the same percentage during regular trading.

Conversant will be part of Epsilon, Alliance Data's online marketing unit that has partnered with Twitter Inc and Facebook Inc to help advertisers better target customers through loyalty programs.

Alliance said it expects Epsilon to generate about 35 percent — or more than $2 billion — of revenue and more than 500 million in adjusted earnings before interests, tax, depriciation and amortization, following the acquisition.

The Dallas, Texas-based company also expects the acquisition to add about 50 cents to core earnings per share in the first year after the deal's close and about 75 cents in the next, excluding transaction costs.

The deal is subject to regulatory approval and is expected to close by the year-end.

© 2017 Thomson/Reuters. All rights reserved.

 
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Credit card processor Alliance Data Systems Corp. said it will buy Conversant Inc. for about $2.3 billion in cash and stock to boost its digital marketing business.
Alliance, Data, Buy, Conversant
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2014-11-11
Thursday, 11 Sep 2014 06:11 PM
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