JPMorgan Chase (NYSE: JPM) revealed it would be acquiring one of the largest third-party credit card loyalty businesses as a means of gambling on travel and its eventual comeback. The company decided on Monday to purchase cxLoyalty Groups technology platforms, travel agency, gift card and points businesses, according to a person familiar with the matter.
“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,” said Marianne Lake, Chief Executive Officer of Consumer Lending at JPMorgan Chase.
The bank is gaining approximately 3,100 of the company’s employees upon the agreement and will be building a new business within its retail section, reporting to Marianne Lake, head of the bank’s consumer lending business, the person said. The transaction will finalize this coming week, however it is unknown the exact amount JP Morgan paid in the deal. Nevertheless, JPMorgan will not be acquiring cxLoyalty’s engagement division.
“JPMorgan Chase is the right partner to further invest in our leading loyalty business,” said Todd Siegel, Chief Executive Officer of cxLoyalty. “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.”
According to a statement, the transaction is set to make Siegel head of the new JPMorgan business.