LMG, the owner of the Nectar and Airmiles loyalty schemes, has been bought by Canadian loyalty marketing company Aeroplan for £350m. LMG chairman Sir Keith Mills will step down from the company when the acquisition is complete.
Rupert Duchesne, Aeroplan president and chief executive, says the move forms part of an acquisition strategy that will focus on the UK. He adds that the deal with give Aeroplan a “dominant” position in the UK, which he says is one of the most important and active loyalty markets as well as help it to expand in Canada and internationally.
He says: “The acquisition of LMG gives us unparalleled breadth of retail, financial services, travel, as well as data analytics skills and experience.”
LMG, which is owned by Mills, private equity group Warburg Pincus and the management team, says the deal improves its own expansion plans. LMG operates in three main areas: Nectar, insight and communications and Loyalty International.
The two loyalty programs, Nectar and Aeroplan, will continue to be operated separately. Duchesne will remain president and chief executive of the company and LMG chief executive Alex Moorhead and his executive team will be retained as part of the deal.
Nectar is the UK’s largest customer rewards program with 50% of UK households participating through 15 national retail brands.