Credit rewards companies to merge
New operation will serve “four of top five” US credit card issuers
US credit card rewards companies Cartera Commerce and Vesdia are to merge.
The pair say that the newly formed company will work with four of the top five US credit card issuers, and three of the four largest US airlines.
Terms of the all-stock merger transaction between the pair, which is expected to close shortly, were not disclosed.
The companies business involves collecting offers and discounts that can be presented to consumers who carry a particular credit card, debit card or frequent flier card.
Vesdia and Cartera provide merchant-funded rewards programs. For example, Vesdia matches card companies such as SunTrust Banks and Citi with merchants ranging from Macy’s to Lowe’s to AMC Theatres to online stores, offering ways for consumers to earn more reward points with each credit card purchase.
“There is unprecedented market demand for multi-channel merchant networks, performance advertising and transaction marketing solutions, especially given the impact of the Durbin Amendment on debit card interchange fees,” said Tom Beecher, president and CEO of Cartera Commerce. “With more comprehensive solutions, a larger merchant network and greater overall scale, the merger of Cartera and Vesdia allows us to fully capitalize on this compelling market opportunity, driving incremental revenue for merchants, banks and loyalty programs.”
Beecher will be CEO of the new combined company, which will retain the Cartera Commerce name.
He says that the combined company will have 150 employees (about 50% each from Vesdia and Cartera). It will be based at Cartera’s headquarters in Lexington, but retain “significant” operations at Vesdia’s Atlanta base.
Vesdia CEO Jim Douglass will stay on as an executive vice president, and also as a board member.
Pete Kight, chairman of the board for Vesdia, co-chairman of the Comvest Group and previously the founder, chairman and CEO of CheckFree has joined Cartera’s board of directors.