Pax Global Media
The Bank of Montreal (BMO) has signed a deal to acquire the Air Miles reward program from LoyaltyOne Co., it was announced Friday (March 10).
For BMO customers and all AIR MILES collecting Canadians, as well as partners across the country, the acquisition aims to reinvigorate one of Canada’s largest loyalty programs.
As a founding partner of the AIR MILES program since 1992, BMO said it is "well positioned" to strengthen and grow the popular program.
"As a leading partner, we have always believed in the value of the AIR MILES program for Canadians and are confident about the continued opportunities to build even greater customer loyalty," said Ernie Johannson, Group Head, North American Personal & Business Banking, BMO. "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."
It's said that AIR MILES has nearly 10 million active collector accounts, representing approximately two-thirds of Canadian households.
"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, AIR MILES Reward Program. "BMO's agreement to purchase the Air Miles business has no impact on AIR MILES collectors' Reward Miles balances or on collectors' ability to collect and redeem AIR MILES Reward Miles. AIR MILES continues to serve its customers — ensuring that they are rewarded richly and that they can use their Reward Miles in a way that meets their needs."
BMO's acquisition of the AIR MILES Reward Program business has been proposed as part of LoyaltyOne's proceeding under the Companies' Creditors Arrangement Act (Canada) commenced in the Ontario Superior Court of Justice (Commercial List) (the Court).
The proceeding will also involve a sale and investment solicitation process to solicit any other interest in the AIR MILES business, according to a press release.
BMO's acquisition or a proposed acquisition by any other bidder will be subject to court approval.
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