Overview:
Headquartered in Plano, TX and founded in 1996, Alliance Data Systems Corporation is the largest private label credit card processing firm for mid-market specialty retail stores in the U.S. It provides transaction, marketing and credit services in the United States, Canada and internationally. Using transaction-rich data, Alliance Data creates and manages customized solutions that change consumer behavior and enable its clients to create and enhance customer loyalty to build stronger, mutually beneficial relationships with their customers. The company is a leading player among its competitors. Alliance Data is one of the largest third party payment processors in the United States and the second largest third party private label card issuer as measured by accounts. In Canada, it owns and operates the premier coalition loyalty-marketing program (AIR MILES).
The company operates in three reportable segments: LoyaltyOne, Epsilon and Private Label Services and Credit.
Private Label Services and Credit (47% of 2013 revenues) provides risk management solutions, account origination, funding, transaction processing, customer care and collections services for the company's private label retail credit card programs.
Epsilon (32%) provides integrated direct marketing solutions that combine database marketing technology and analytics with a broad range of direct marketing services
Loyalty Services (21%) represents the company's Canadian AIR MILES program, the largest consumer coalition program in Canada and generates revenues primarily from the same. This segment's results can be impacted by changes in the foreign currency exchange rate between the U.S. dollar and the Canadian dollar.
Source: Company
As of Dec 31, 2013, the company had total assets of $13.2 billion (up 10% year over year), long-term debt of $2.4 billion (up 20% year over year) and shareholder equity of $855.8 million (up 61.9% year over year).
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