In a welcome display of confidence in the travel industry, JPMorgan Chase & Co. closed 2020 by finalizing the purchase of cxLoyalty Group Holding’s Global Loyalty Division. The deal will include cxLoyalty’s leading technology platforms, full-service travel agency, gift cards, merchandise, and points bank businesses. The transaction won’t include cxLoyalty Group Holdings’ Global Customer Engagement division and other ongoing businesses.
A leading loyalty and customer engagement solutions company, cxLoyalty Group had serviced 70 million consumers with approximately 3,000 client and marketing partner relationships spanning 40 years of experience. Since the company’s inception, cxLoyalty Group has administered and fulfilled loyalty and customer engagement programs to create strong and valuable relationships for brands globally, including some of the largest companies in the financial services, retail, travel, and telecom industries. It was shared that the deal will expand upon the strong foundation built in loyalty, including for Chase’s Ultimate Rewards platform and cxLoyalty’s existing clients. The goal will be to enable an improved, end-to-end holistic travel journey for all customers.
The cxLoyalty brand and existing client relationships will continue to be led by cxLoyalty Group CEO Todd Siegel. Speaking on this deal, Siegel said "We are pleased to announce this compelling transaction, which provides significant benefits for our clients, customers, employees and other stakeholders. We have built two strong, distinct businesses, and we look forward to enhancing their focus on their unique strategic priorities and market opportunities.” He further expressed confidence in a seamless transition, commending the tireless work of the company’s employees in aiding the achievement of this significant milestone.
Following the sale, cxLoyalty’s Global Customer Engagement Division will form dedicated teams and resources to focus on market opportunities to seek new pathways toward growth and success in the unique times they’re facing. It was shared that cxLoyalty will drive greater investments in technology, content and servicing solutions to level up customer experience and client offerings. Differentiated personalized solutions will be an aim as the company seeks to strengthen its balance sheet to enable further investment in important areas such as customer and content intelligence.
Sigel further shared that the partnership will excitingly expand cxLoyalty’s technology solutions, rewards content, and world class personalized customer experience to Fortune 500 clients and their millions of clients globally. Despite the vote of confidence, it will be interesting to see how travel recovers from the pandemic, in spite of Microsoft’s Bill Gates warning that business travel won’t likely come back to pre-pandemic levels.