The Bank of Montreal (BMO) has signed a deal to acquire the Air Miles reward program from LoyaltyOne Co.
The agreement, announced on Friday, aims to reinvigorate one of Canada’s largest loyalty programs.
“If our acquisition of the Air Miles business is successful, we will bring the ownership of Air Miles home to Canada and strengthen its offering for Canadian consumers and businesses together with leading Canadian, global and online program partners and merchants,” said Ernie Johannson, group head of BMO’s North American personal and business banking, in a statement.
We are excited to share that BMO, our anchor partner, has announced its intention to acquire AIR MILES, the leading loyalty program, subject to court approval. To read more about this news visit https://t.co/BMXunXuJql.
— AIR MILES Reward Program (@AIRMILES) March 10, 2023
This news comes after the parent company of LoyaltyOne, Loyalty Ventures Inc., filed for bankruptcy in the US on Friday as it struggled with making money and losing customers, according to BNN Bloomberg.
“As Air Miles’ longstanding partner, BMO’s acquisition would be a significant step forward in solidifying the future of the Air Miles program,” said Shawn Stewart, president of the Air Miles reward program.
BMO was a founding partner of Air Miles in 1992. The loyalty program, which allows people to redeem reward miles for merchandise, flights, events and attractions, has since garnered 10 million active collectors, representing about two-thirds of all Canadian households.
According to Stewart, the agreement will not impact collectors’ reward miles balances or their ability to collect and redeem points.
The deal to buy the loyalty program has been proposed as part of LoyaltyOne’s proceeding under the Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice.
LoyaltyOne’s CCAA proceeding will also involve a sale and investment solicitation process to solicit any other interest in the loyalty program business.
BMO’s acquisition of the rewards program is still subject to court approval.
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