BMO Financial Group signs deal to acquire Air Miles loyalty rewards program

BMO Financial Group introduced a deal Friday to accumulate the Air Miles loyalty rewards program from LoyaltyOne Co.

Financial phrases of the settlement weren’t instantly out there.

Air Miles president Shawn Stewart known as the deal a “significant step forward in solidifying the future of the Air Miles program.”

The deal has “no impact on Air Miles collectors’ reward miles balances or on collectors’ ability to collect and redeem Air Miles reward miles,” Stewart mentioned in a press release.

Air Miles is without doubt one of the largest loyalty packages in Canada, with practically 10 million energetic collector accounts representing about two-thirds of Canadian households.

Collectors earn Air Miles at retail shops and repair areas in addition to by way of some credit score and debit playing cards, which may be redeemed for “aspirational rewards” like merchandise, journey, occasions, and sights.

Loyalty Ventures Inc., the dad or mum firm of LoyaltyOne, filed for Chapter 11 chapter within the U.S. on Friday.

The BMO deal for Air Miles has been proposed as a part of LoyaltyOne’s continuing underneath the Companies’ Creditors Arrangement Act in Canada.

The course of will embody a sale and funding solicitation course of to hunt another curiosity within the Air Miles business.

The sale transaction is contingent on LoyaltyOne not receiving a extra favorable provide and would require courtroom approval.

BMO mentioned the acquisition would speed up the long run development of Air Miles.

“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,” Ernie Johannson, BMO’s group head, North American private and business banking, mentioned in a press release.

The financial institution has been an Air Miles accomplice since 1992.

Rewards packages have proliferated in recent times as firms search to be taught extra about clients and their buying habits.

The knowledge collected by way of these packages has more and more been used to focus on clients with tailored-made advertising presents and promotions in a bid to extend gross sales and loyalty.

The mounting worth of loyalty packages has prompted some retailers to undertake and increase their very own packages.

Last June, grocery large Empire Co. Ltd. mentioned it could scrap the Air Miles program after changing into a co-owner of the Scene+ program operated by Cineplex Inc. and Scotiabank.

The dad or mum firm of chains like Sobeys, Safeway and RecentCo started to transition to Scene+ final August.

A discover on the Air Miles web site mentioned as of this month, Sobeys and all its affiliated banners will now not be a part of program as soon as Thrifty Foods and IGA full the corporate’s exit.

This report by The Canadian Press was first printed March 10, 2023.