Bank of Montreal (BMO) has signed a deal to acquire the Air Miles loyalty rewards program from LoyaltyOne Co. in a bankruptcy proceeding.
Financial terms of the deal were not disclosed. However, Bank of Montreal made the move to acquire the Air Miles program on the same day that LoyaltyOne’s parent company, Dallas, Texas-based Loyalty Ventures (LYLT), filed for bankruptcy in U.S. court.
Loyalty Venture’s share price fell 53% in premarket trading on news of the bankruptcy filing.
Bank of Montreal said the acquisition will not impact people’s Air Miles balances, or their ability to collect and redeem points going forward.
Air Miles currently has nearly 10 million active accounts in Canada.
The deal was arranged as part of Loyalty Venture’s bankruptcy filing. The deal will require approval from the court involved in the bankruptcy proceeding.
Bank of Montreal’s stock is down 15% over the past 12 months and trading at $125.42 per share.
