Consortium Bids for Aimia's Aeroplan Scheme

Loyalty analytics company Aimia has received a proposal from a consortium to buy its Aeroplan loyalty program business for around $250m in cash - led by the business's original owner Air Canada.

The consortium would also assume liability for the redemption of around $2 billion in Aeroplan points.

With around 2,300 employees across fifteen countries, Aimia offers expertise in launching and managing loyalty programs, and helps clients generate, collect and analyze customer data through various programs. The firm's businesses include Aeroplan in Canada and Air Miles Middle East, while in February it sold its Nectar loyalty program and related assets to supermarket giant J Sainsbury plc for approximately $105m.

Originally created by Air Canada for its frequent flyers, the Aeroplan scheme was eventually sold to Aimia, which analyzes member information, tracks purchasing patterns, identifies profiles of loyal members, and aligns its loyalty program with members' preferences. To buy it back, the airline has partnered with the Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and VISA Canada Corporation.

In a statement, the consortium said: 'If completed, the proposed transaction would result in a positive outcome for Aimia shareholders and Aeroplan members, allowing for a smooth transition of Aeroplan members' points to Air Canada's new loyalty program launching in 2020, safeguarding their points and providing convenience and value for millions of Canadians'. Aimia's stock has surged with the announcement of the bid.

Web site: www.aimia.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.