Alliance Data Explores Strategic Alternatives For Epsilon Business - Quick Facts

(RTTNews) - Alliance Data Systems Corp. (ADS), a provider of data-driven marketing and loyalty solutions, said Tuesday that it is exploring strategic alternatives for its Epsilon business.

The Epsilon business includes its digital media arm Conversant, a global marketing innovator with $2.2 billion of revenue for the trailing 12 months ending September 30, 2018.

Alliance Data noted that these strategic alternatives include a potential sale of the business.

Ed Heffernan, Alliance Data's president and chief executive officer, said, "Today's announcement reflects the outcome of a lengthy study into Alliance Data's portfolio of businesses with the objective of unlocking increased value for Alliance Data stockholders. Optimizing Epsilon's unique collection of assets requires growth and capital allocation strategies that differ from those of our Card Services business, and we believe the time is right to explore alternatives for Epsilon under which Epsilon can reach its full potential."

Following any potential transaction, Alliance Data plans to use its improved capital structure to accelerate growth and realign for Alliance Data 2.0.

In the event of a divestiture, the company currently intends to apply the net proceeds to a combination of deleveraging as well as returning capital to stockholders through share repurchases and/or dividends.

Alliance Data has retained Evercore as a financial advisor and Latham & Watkins LLP as its legal advisor in connection with its exploration of strategic alternatives for Epsilon.