Indicative Investments
Business Services

Loyalty Partner Holding S.A.

Headquarters: Munich, Germany
Business: Loyalty programme management I

Loyalty Partner's PAYBACK business division is Europe's largest loyalty programme, with more than 34 million card holders in Germany alone. Palamon identified that with more than 500 million customer contacts per year the company was uniquely positioned to help its retail partners develop additional marketing services including targeting, research, and communication. Following the buyout from Lufthansa in 2005, Palamon successfully accelerated growth in loyalty-related marketing solutions whilst embarking on an aggressive expansion programme, including; launching operations in Poland and India, developing a financial services proposition through offering of combined payment and loyalty cards to consumers and launching an on-line and mobile coupon offering in Germany. Revenue and profitability more than doubled during Palamon's hold period and in March 2011 Loyalty Partner was sold to American Express in a transaction valued at €503 million. The sale generated proceeds of €238 million at a 3.0x return on invested capital.