Aimia Sells Nectar Loyalty Business to Sainsbury's

Data-driven marketing and loyalty analytics company Aimia has sold its Nectar loyalty program and related assets to supermarket giant J Sainsbury plc for approximately $105m (£60m).

Nectar was launched in 2002 through the merger of existing loyalty programmes run by Sainsbury's, BP and Barclaycard. The scheme is the largest in the UK, and now covers fourteen companies and more than 400 online retailers. In a statement, Sainsbury's said the buy supports its strategy of knowing its customers better than anyone else.

Along with the sale of the Nectar business, Aimia's Intelligent Shopper Solutions UK and Intelligent Research businesses, and a 50% equity stake in its i2c joint venture with the supermarket, the deal also includes the transfer to Sainsbury's of approximately $183m (£105m) of cash to provide for the redemption of existing Nectar points. The transaction is also subject to working capital adjustments based on closing accounts, with net working capital amounts paid to Sainsbury's at closing of approximately $96m (£55m).

Following the sale, Aimia will continue to deliver customer insights and data analytics platforms to customers outside the UK, through businesses such as Aeroplan in Canada and Air Miles in the Middle East. Group CEO David Johnston (pictured) comments: 'Selling the Nectar business to Sainsbury's was the optimal risk-adjusted outcome for Aimia and we have worked to ensure a seamless transition for collectors and employees. The transaction allows for a sharper focus on Aeroplan, our largest and most profitable business, and simplifies our operations all the while preserving a robust balance sheet for our ongoing business'.

Web sites: www.aimia.com and www.j-sainsbury.co.uk

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