Aimia sells Air Miles Trademarks for Canada to Diversified Royalty Corp. for total consideration of up to $67 million
MONTREAL, Aug. 25, 2017 /CNW Telbec/ - Aimia Inc. (TSX: AIM), the data-driven marketing and loyalty analytics company, announced today that it has sold the Air Miles Trademarks for Canada to Diversified Royalty Corp. (TSX: DIV).
Aimia transfers the Air Miles Trademarks, license and royalty agreements for Canada to Diversified Royalty Corp. for a cash consideration of approximately $53.75 million. An additional contingent consideration, up to a maximum of approximately $13.75 million, may be paid within the next three years, based on the performance of the program. Aimia expects to pay cash taxes related to the sale of these trademarks in 2018 of between $13 million and $16 million. Annual license fee revenue generated from the trademarks being sold has historically represented approximately $8.5 million on average.
The Air Miles Trademarks for Canada are used under license and exclusive right by LoyaltyOne, Inc.
"This transaction is part of our plan to simplify our business. We continue to evaluate and consider further disposals of non-core investments and assets to strengthen our balance sheet," said David Johnston, Group Chief Executive, Aimia.
Aimia Inc. (TSX: AIM) is a data-driven marketing and loyalty analytics company. We provide our clients with the customer insights they need to make smarter business decisions and build relevant, rewarding and long-term one-to-one relationships, evolving the value exchange to the mutual benefit of both our clients and consumers.
With about 2,300 employees across 15 countries, Aimia partners with groups of companies (coalitions) and individual companies to help generate, collect and analyze customer data and build actionable insights.
We do this through our own coalition loyalty programs such as Aeroplan in Canada, Nectar in the U.K., and Air Miles Middle East, and through provision of loyalty strategy, program development, implementation and management services underpinned by leading products and technology platforms such as the Aimia Loyalty Platform and Smart Button, and through our analytics and insights business, including Intelligent Shopper Solutions. In other markets, we own stakes in loyalty programs, such as Club Premier in Mexico and Think Big, a partnership with Air Asia and Tune Group. Our clients are diverse, and we have industry-leading expertise in the fast-moving consumer goods, retail, financial services, and travel and airline industries globally to deliver against their unique needs.
For a full list of our partnerships and investments, and more information about Aimia, visit www.aimia.com.