New York-based private equity firm Lightyear Capital has acquired Augeo FI, a loyalty program provider for banks and credit unions.
The deal, which is worth $140m, will see the company’s parent business Augeo Affinity Marketing sell its shares. Following the deal, Mike Knoop will continue as the CEO of Augeo FI, along with the existing management team.
Founded in 2008, the company offers middle-market banks and credit unions with an outsourced, customised loyalty program. The platform currently supports 1,200 clients, helping to encourage spending on over 24 million cards, according to the company.
Illinois-headquartered Augeo tracks points which can be earned by completing transactions with debit or credit cards. A client can also rewards customers by completing actions they wish to incentivise and encourage.
The bank or credit union is able to use the system to encourage loyalty, but also for reporting, data analytics and insights.
Customers can redeem points for offers on brand merchandise, travel, charitable donations, prepaid debit, gift cards, point of sale, unique experiences, live event tickets, and green products, among others. There are a number of gamified redemptions which include sweepstakes and auctions.
Augeo FI CEO Mike Knoop said, “This additional capital will allow us to expand our capabilities, such as our pay-with-points offerings, and to continue to invest in technology in order to deliver ever-more sophisticated and customized reporting back to our clients, giving them highly actionable insights they can use to better understand and serve their customers.”
Last month, Lightyear Capital led the undisclosed investment round into healthcare payments company Alegeus.
Copyright © 2018 FinTech Global
