Internet direct marketer and loyalty player MyPoints.com Thursday ventured into
the offline world with the acquisition of Alliance Development Group (ADG),
which develops and manages loyalty programs for co-branded credit cards.
Financial terms of the transaction weren’t disclosed. The purchase is
another example, like that of America
Online and Time Warner, of an
Internet company with a high valuation buying an offline player.
MyPoints.com says the move is a way for it to expand beyond Internet
loyalty programs into the larger universe.
“ADG is a recognized leader in the customer loyalty industry,'” says Steve
Markowitz, chairman and chief executive officer of MyPoints.com.
“We share a common ‘clicks and mortar’ vision and have extremely
complementary products and services. By leveraging the expertise and
relationships of ADG, MyPoints.com looks forward to offering members and
merchant partners innovative products that bridge the online and offline
worlds.”
ADG’s programs let cardholders earn points with each dollar spent on their
co-branded MasterCard or Visa credit card, which they can then redeem for
travel, entertainment and merchandise rewards.
ADG’s partners include The Kroger Co. and several divisions
of Albertsons, which are among the
nation’s largest supermarket retailers. ADG’s bank partners include US Bank and Bank of America.