US loyalty and payment solutions provider Alliance Data is acquiring personalised payment fintech Bread for $450 million.
The acquisition, subject to regulatory approval and customary closing conditions, is expected to close by the end of 2020.
Bread provides point-of-sale technologies, including installment and buy now, pay later solutions, and integrates directly with retailers’ ecommerce websites.
The fintech’s 185 employees will join their new parent company when the acquisition closes, giving the company, whose credit and loyalty programmes do not yet offer installment and buy now, pay later solutions, a starting base of 400 clients. It intends to offer Bread’s technology platform to its own brand partners “soon”.
Ralph Andretta, president and chief executive officer of Alliance Data, said “the acquisition of Bread significantly expands our digital capabilities and payment options for our brand partners and their customers, while providing another reason for retailers and brands to choose Alliance Data to help them grow their businesses”.
“Bread’s pay-over-time solutions, together with our robust existing private label, general purpose and commercial products, will further expand our breadth of payment options and capabilities, giving our brand partners across all verticals another way to capitalise on the rapidly growing ecommerce channel.”
Josh Abramowitz, chief executive officer at Bread, said: “At Bread, we’ve always strived to reimagine payments in the digital age, and we’re excited for the opportunity to provide Alliance Data with our technology, support and digital development expertise through this agreement.”
“We look forward to helping an industry leader like Alliance Data grow its business by offering enhanced solutions for its clients and their customers.”